New York Court Forces Genius Group to Sell Part of its Bitcoin Holdings
Genius Group, an education and tech enterprise based in Singapore, is compelled to divest its Bitcoin assets due to a ruling from a US court.
In a significant turn of events, a court ruling in the United States has imposed severe financial limitations on Genius Group, barring it from issuing shares or raising funds. This action stems from a legal conflict that has hindered the company from securing capital, issuing shares, or acquiring more Bitcoin.
The firm’s announcement indicates that the American District Court for the Southern District of New York has sanctioned a preliminary injunction that disrupts its ability to generate income through stock offerings.
The contention arose from a failed agreement between Genius Group and Fatbrain AI. Genius Group sought to annul a contract with Fatbrain AI, which resulted in fraud allegations from shareholders and an investigation by the SEC.
As stated by the firm, the legal struggle has now resulted in a Temporary Restraining Order (TRO), which restricts access to investor assets and obliges the company to commence liquidation of its Bitcoin reserves, significantly affecting its operations and financial outlook.
Reports suggest that Moe and Ritz were accused of masterminding a scheme to extort millions from Genius Group through abusive legal maneuvers, including the Temporary Restraining Order (TRO) and Preliminary Injunction (PI). On February 14, 2025, they lodged a TRO and PI to obstruct Genius from selling any shares, raising capital, or utilizing its $150 million ATM funding, specifically obstructing Bitcoin purchases.
How The Decision May Affect Genius Group
Sadly, Genius Group reported a decline in its BTC reserves from 440 BTC to 430 BTC despite its previous ambition to allocate 90% or more of its current and future reserves to Bitcoin, initially targeting $120 million. Should the legal battle persist, further liquidations could ensue. Following the ruling, Genius’s stock price plummeted by 53%, falling from $0.47 to $0.22 in recent weeks.
At present, Genius’s market capitalization is only 40% of the worth of its remaining Bitcoin assets, placing it in a tenuous position as it aspires to become a frontrunner in AI-driven, Bitcoin-centric education.
Genius Group asserts that the US court injunction has also compelled it to breach Singapore law by ceasing share compensation to employees in accordance with their employment contracts.
“We never imagined that a US court could prevent the company from issuing shares, raising funds, or purchasing Bitcoin—all actions typically governed by a public company’s shareholders or Board rather than a court,” stated Genius Group CEO Roger James Hamilton.
