Genius Group forced to sell Bitcoin after court order

Genius Group, an AI education company, announced that it should sell its Bitcoin holdings after an order from the United States court prevented the company from selling stocks, collecting funds or buying Bitcoin.

The American district court of the South District of New York published a preliminary injunction on March 13, preventing the group of geniuses from accessing its financing of $ 150 million to the market and to continue its Bitcoin-STRAGY.

Consequently, the company has reduced its bitcoin (BTC) Holdings from 440 to 430 Bitcoin to fund operationsAccording to a business note.

Multiple prosecution

The legal battle follows from the attempt of the Genius Group to terminate an asset purchase agreement with Fatbrain AI, a agreement This has become the objective of several proceedings.

In October 2024, Genius Group launched the arbitration to leave the agreement. In December, the two companies had accepted a preliminary injunction linked to APA.

The shareholders of Fatbrain AI subsequently brought prosecution against the company and its leaders, Michael Moe and Peter Ritz, alleging fraud as part of the APA. The SEC has also brought allegations of shareholders against Fatbrain IA, according to Genius Group.

In response, Moe and Ritz research A temporary prohibition order and a preliminary injunction against Genius Group, which the court granted on February 14.

False statements

Genius Group claims that the injunction was based on false statements and filed requests to raise the restrictions. The company also submitted a transcription of a meeting with Ritz, alleging that he detailed a strategy to use the court order to extract money from the Genius group.

According to the note, the shareholders of Fatbrain AI also deposited this transcription in their trial against Moe and Ritz in Florida.

The CEO of Genius Group, Roger James Hamilton, said that the company did not provide for that an American court could restrict its financial decisions.

“We have never dreamed that it was possible that an American court could prevent the company from being able to issue actions, collect funds or buy Bitcoin – all the actions which would normally be decided by the shareholders or the board of directors of a public company rather than by a court,” said Hamilton.

The court order forced the engineering group to restructure its operations, in particular the reduction in staff, the closure of divisions and the cessation of sponsorships, marketing and investments. The company has also not been able to issue compensation based on actions to employees, which, according to it, puts it into violation of Singaporean Labor laws.

“We will not fold to fraudsters and market manipulators who are themselves the subject of multiple proceedings for fraud and fault,” said Hamilton.

Since the prohibition order, Genius Group action course has dropped by 53% and its market capitalization is now 40% of its Bitcoin treasure value. The company has filed an emergency request to the American Court of Appeal for the second circuit to cancel the injunction.

Genius Group adopted a Bitcoin strategy first in November 2024, aim Bitcoin as the main active cash reserve. Although it was forced to sell assets, the company reiterated its commitment to Bitcoin and its belief in its long -term value.