- Genius Group is forced to sell Bitcoin due to a U.S. court order
- This court order blocks the company’s financial transactions
- Its shares dropped 53% since the injunction was imposed
- Company has filed an appeal with the U.S. Court of Appeals for the Second Circuit
- Genius Group continues to pursue a Bitcoin-first strategy
Genius Group forced to sell Bitcoin Due to U.S. Court Decision that prohibited the company from selling shares, raising funds, and acquiring additional BTC. This immediately caused a dramatic 53% drop in share price, but the company states that it continues to pursue a Bitcoin-first strategy and has filed an appeal with the U.S. Court of Appeals for the Second Circuit.
Genius Group Court Injunction Story & Current Stance
It feels like recently we were discussing Genius Group’s $33M rights offering for its Bitcoin strategic plans, and now we are seeing the company being forced to sell part of its Bitcoin reserves. Everything began with a Temporary Restraining Order (TRO) issued on February 14, 2025, followed by a Preliminary Injunction (PI) granted by the U.S. District Court for the Southern District of New York on March 13, 2025. These orders effectively blocked Genius Group from selling shares, raising funds, and using investor funds to purchase Bitcoin. In other words, it undermines not only their Bitcoin-first strategy but also their entire operational capacity.
This situation is also linked to efforts to impact the Asset Purchase Agreement (APA) between Genius Group and Fatbrain AI, which began in October 2024. Genius Group initiated arbitration against Fatbrain AI, seeking to terminate the APA. Both parties agreed to a preliminary injunction concerning shares related to the agreement. However, Michael Moe and Peter Ritz, associated with Fatbrain AI, filed motions for a TRO and PI, which successfully blocked Genius Group’s ability to raise funds and buy Bitcoin.
The company’s CEO, Roger James Hamilton, expressed his surprise at how the situation unfolded:
“When Genius had its IPO in the US in 2022, we believed exposure to the US public market would be of benefit to a Singapore-based company like ours. We never dreamed that it was possible that a US court could block the company from being able to issue shares, raise funds, or buy Bitcoin – all actions that would normally be decided by a public company’s shareholders or Board rather than a court. We especially did not expect that such destructive actions could be successfully achieved through the courts by individuals who were actively working against the interests of our company’s shareholders and Board.”
As a result, Genius Group is now in a highly vulnerable position, with its shares falling 53% following the court’s decision and the sale of 10 BTC from its reserves. According to official statements, the stock price dropped from $0.47 to $0.22 during this period, while Yahoo Finance shows that the stock price was $0.412 on February 14, 2025, and $0.218 on April 3, 2025.
However, the company remains committed to its Bitcoin-first strategy and is actively working with the judicial system to restore its operations. The company has already filed an appeal with the U.S. Court of Appeals for the Second Circuit.
“We will not bend to fraudsters and market manipulators that are themselves the subject of multiple lawsuits for fraud and misconduct. We will continue to take all actions necessary and possible to protect the interests of our shareholders and the future of Genius Group. We will also continue to fly the flag for Bitcoin, even when legally banned from building our Bitcoin Treasury. We believe Bitcoin ensures transparency and prevents exactly the kind of wire fraud and shareholder fraud that are the subject of the current lawsuits.”
Conclusion
This is a pretty serious challenge for Genius Group, and it is hard to know how exactly it will end or, on the contrary, how far it will go. It is possible that Genius Group will suffer irreparable damage,, or perhaps even win the case and seek compensation for this damage. Stay tuned for updates, be adaptive in the rapidly evolving financial and crypto landscape, and keep your crypto strategy grounded and balanced.
