U.S. Court Blocks Singapore’s Genius Group from Expanding Bitcoin Holdings

Singapore-based synthetic intelligence firm Genius Group has been quickly barred from increasing its Bitcoin reserves following a U.S. courtroom order.

The corporate announced on April 3 {that a} New York District Courtroom issued a preliminary injunction (PI) and momentary restraining order (TRO) on March 13, limiting it from promoting shares, elevating capital, or utilizing investor funds to buy further Bitcoin.

The courtroom order stems from an ongoing authorized dispute between Genius Group and Fatbrain AI, linked to a merger and buy settlement the 2 corporations finalized in March 2024.

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Genius Group Seeks to Terminate Merger, Alleges Fraud by Fatbrain AI Executives

By October 30, Genius Group initiated arbitration proceedings to terminate the merger, alleging fraudulent conduct by Fatbrain AI executives.

In response, Fatbrain AI executives Michael Moe and Peter Ritz filed for the TRO and injunction in February, successfully freezing Genius Group’s capacity to broaden its Bitcoin holdings and conduct routine company actions till the arbitration is resolved.

The restrictions have considerably impacted Genius Group’s operations. The corporate has closed enterprise items, halted advertising efforts, and been compelled to promote 10 Bitcoin from its treasury—beforehand consisting of 440 BTC valued at over $23 million.

Extra Bitcoin gross sales might comply with if the injunction stays in place.

“Genius is taking all crucial measures to reduce Bitcoin gross sales,” the corporate mentioned in its assertion, including that it could want to additional downsize its treasury within the coming months.

The authorized battle has additionally led to additional lawsuits.

Genius Group has been blocked by the US District Courtroom Southern District of New York from promoting shares or elevating funds, and particularly banned from shopping for Bitcoin, in direct opposition to the needs and approvals of the Firm’s board and shareholders.

We are going to hold preventing… pic.twitter.com/Lk6uXzfCx6

— Roger James Hamilton (@rogerhamilton) April 3, 2025

In April 2024, shareholders of Fatbrain AI filed two lawsuits in opposition to each Genius Group and Fatbrain executives, accusing them of violating federal securities legal guidelines. Nonetheless, Genius Group was voluntarily dismissed from these fits in February.

In a stunning flip, Genius Group claims the U.S. courtroom order is inflicting it to breach Singaporean legislation by stopping it from issuing shares promised to workers as a part of compensation agreements. CEO Roger James Hamilton expressed concern over the courtroom’s authority.

“We by no means dreamed that it was attainable {that a} U.S. courtroom might block the corporate from with the ability to problem shares, elevate funds or purchase Bitcoin — all actions that may usually be determined by a public firm’s shareholders or Board fairly than a courtroom.”

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Genius Group CEO Reaffirms Bitcoin Dedication Amid Authorized Setbacks

Regardless of the authorized hurdles, Hamilton affirmed the corporate’s dedication to Bitcoin, stating it’s going to “proceed to fly the flag for Bitcoin” even underneath present constraints.

Genius Group first started constructing its Bitcoin treasury in November 2024, buying 110 BTC for $10 million.

The corporate has publicly dedicated to holding 90% or extra of its reserves in Bitcoin, focusing on a $120 million treasury—a transfer that after despatched its inventory hovering by 66%.

Nonetheless, shares have since plummeted, closing down almost 10% to $0.23 and falling additional after hours. From a peak of over $96 in June 2022, the inventory has now misplaced greater than 99% of its worth.

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