NEWSLETTER
The artificial intelligence company based in Singapore, Genius Group, faces significant restrictions to expand its bitcoin holdings due to a recent legal decision in the United States.
A recent one <a target="_blank" href="https://ir.geniusgroup.net/news-events/press-releases/detail/176/genius-group-blocked-from-raising-funds-and-buying-bitcoin” target=”_blank” rel=”noopener nofollow”>Press release He revealed that on March 13, a New York district court issued a preliminary court order and a temporary restriction order against the company. These requests specifically prohibit Genius Group Sell shares, raise new funds or use existing investor funds to buy additional bitcoin.
What really happened?
The legal action is derived from a controversial fusion between Genius Group and Fatbrain ai, completed in March 2024. After the merger, Genius Group began arbitration procedures to finish the agreement in October of the same year, accusing Fatbrain ai fraud executives.
Subsequently, Fatbrain ai Michael Moe and Peter Ritz executives sought a temporary restriction order in February to prevent Genius Group from participating in certain financial activities, including more bitcoin purchases, until arbitration is resolved.
Due to the legal restrictions imposed, Genius Group has been forced to reduce several aspects of its commercial operations. The company declared that it has closed several divisions, stopped marketing campaigns and, in particular, began to liquidate its bitcoin reserves.
To maintain operational liquidity, Genius Group recently sold 10 bitcoin of its total holdings of 440 btc, currently valued at more than $ 23 million. The company warned that you might need to reduce its bitcoin holdings further if the mandate remains in place.
The firm explained in its public statement.
Genius is taking all necessary measures to minimize bitcoin sales, but anticipates that he must reduce his bitcoin treasure in the coming months in case the PI remains in place. On the date, the company has had to reduce its bitcoin holdings of 440 bitcoin to 430 bitcoin.
Broader legal challenges and repercussions
In addition to the court order, ai's shareholders have submitted two demands against the executives of Genius Group and Fatbrain ai Moe and Ritz. These demands, initiated in April 2024, affirm that federal laws of values were violated during the merger process.
<blockquote class="twitter-tweet”>
Genius Group has been blocked by the southern district of the US District Court of New York to sell shares or raise funds, and specifically forbidden to buy bitcoin, in direct opposition to the wishes and approvals of the Board and shareholders of the company.
We will continue fighting … pic.twitter.com/lk6uxfcx6
– Roger James Hamilton (@ROGERHAMILTON) <a target="_blank" href="https://twitter.com/rogerhamilton/status/1907838407835001125?ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener nofollow”>April 3, 2025
The impact of the court order extends beyond financial operations; Genius Group affirms that he has been forced to violate Singapore's law by suspending shares -based employee compensation schemes, which were part of the existing employment agreements.
The company's CEO, Roger James Hamilton, expressed his frustration and surprise, declaring:
Especially we did not expect such destructive actions to be successfully achieved through courts by people who actively worked against the interests of the shareholders and the Board of our company.
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