Singapore-based AI agency Genius Group has been briefly barred from growing its Bitcoin holdings on account of a U.S. courtroom order linked to an ongoing dispute with Fatbrain AI.
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’ll maintain preventing… pic.twitter.com/Lk6uXzfCx6
— Roger James Hamilton (@rogerhamilton) April 3, 2025
In an April third assertion, Genius Group mentioned a New York District Courtroom issued a preliminary injunction and momentary restraining order on March thirteenth.
The order prevents the corporate from promoting shares, elevating capital, or utilizing investor funds to purchase extra Bitcoin whereas arbitration is underway.
The dispute stems from a merger settlement between Genius Group and Fatbrain AI accomplished in March 2024.
By October, Genius Group initiated arbitration to terminate the deal, alleging misconduct by Fatbrain executives.
In February, Fatbrain executives Michael Moe and Peter Ritz sought a courtroom order to dam Genius Group from additional monetary actions, together with Bitcoin purchases, throughout arbitration.
Consequently, Genius Group mentioned it has closed enterprise items, paused advertising and marketing, and bought 10 of its 440 Bitcoins—at present valued at over $23 million—to assist operations. It warned that additional gross sales could also be wanted if restrictions stay.
“Genius is taking all crucial measures to attenuate Bitcoin gross sales however anticipates that it might want to downsize its Bitcoin Treasury within the coming months within the occasion the PI stays in place,” the corporate acknowledged.
In April, Fatbrain shareholders filed lawsuits in opposition to Fatbrain executives and Genius Group, alleging federal securities regulation violations associated to the merger.
Genius Group additionally mentioned the injunction has disrupted share-based compensation to workers, which it claims violates Singaporean employment legal guidelines.
“We by no means dreamed that it was attainable {that a} US courtroom may block the corporate from having the ability to situation shares, increase funds or purchase Bitcoin — all actions that might usually be determined by a public firm’s shareholders or Board reasonably than a courtroom,” mentioned Genius Group CEO Roger James Hamilton.
Hamilton added that the corporate will “proceed to fly the flag for Bitcoin,” regardless of the present restrictions.
Genius Group started constructing its Bitcoin treasury in November 2024 with an preliminary $10 million buy of 110 Bitcoin.
Share this text