Genius Group forced to sell Bitcoin after US court order
Legal disputes over a failed agreement have disrupted Genius Group’s Bitcoin-first strategy.
Genius Group, an AI-focused education firm based in Singapore, has been compelled to sell part of its Bitcoin holdings after a US court blocked it from raising funds or investing.
The Southern District of New York issued the injunction on 13 March. It halted the company’s $150 million at-the-market financing and disrupted its Bitcoin-first treasury strategy. As a result, Genius Group has trimmed its Bitcoin reserves from 440 to 430 to cover operational costs.
The dispute centres on Genius Group’s attempt to exit an Asset Purchase Agreement (APA) with Fatbrain AI. Fatbrain shareholders and the SEC accused the firm’s executives of fraud linked to the APA.
In response, Michael Moe and Peter Ritz, associated with Fatbrain AI, successfully sought a restraining order against Genius Group. The company claims the order is based on falsehoods.
A transcript allegedly detailing a plan to leverage the court system for financial gain was presented as evidence. Both parties have used it in different legal actions.
The injunction has had far-reaching effects, forcing Genius Group to shut down divisions and pause investments. It has also caused the company to violate Singaporean labour laws by being unable to issue share-based compensation.
CEO Roger James Hamilton voiced frustration, stating the situation undermines corporate autonomy. Despite setbacks, the company remains committed to Bitcoin and is appealing to overturn the court’s decision.
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