Genius Group Halts Bitcoin Purchases Due to Court Injunction

Genius Group announced that it has temporarily halted Bitcoin purchases due to a preliminary injunction issued by the US District Court for the Southern District of New York. The court ruling, issued on March 13, prohibits the company from using investor funds to purchase Bitcoin.

Dispute Between Genius Group and Fatbrain AI

The decision to halt Bitcoin purchases is linked to an ongoing dispute between Genius Group and Fatbrain AI.

• In March 2024, Genius Group and Fatbrain AI completed a merger and acquisition agreement.

• However, on October 30, Genius Group initiated arbitration proceedings to terminate the deal, accusing Fatbrain AI executives of fraud.

• In February, Fatbrain AI executives Michael Moe and Peter Ritz filed for a temporary restraining order (TRO) to block Genius Group from selling shares, raising funds, and purchasing Bitcoin.

Following the court’s decision, Genius Group was forced to shut down certain divisions, halt marketing activities, and sell 10 Bitcoin from its 440 BTC treasury to fund operations.

Genius Group May Further Reduce Bitcoin Reserves

The company stated that it is taking all necessary measures to minimize Bitcoin sales, but it may be forced to downsize its Bitcoin reserves if the court ruling remains in effect.

“Genius is taking all necessary measures to minimize Bitcoin sales, but if the court ruling remains in place, we may need to reduce our Bitcoin treasury further in the coming months,” the company said.

Genius Group: “US Court is Forcing Us to Violate Singapore Law”

Genius Group claims that the US court ruling has also forced the company to violate Singapore law.

The company stated that halting share-based compensation for employees contradicts Singapore’s employment laws.

Genius Group CEO Roger James Hamilton said:

“We never imagined that a US court could block a public company from issuing shares, raising funds, or purchasing Bitcoin—decisions that should normally be made by the company’s shareholders or Board, not a court.”

Despite legal restrictions, Genius Group reaffirmed its commitment to supporting Bitcoin.

You can freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram  ,YouTube and Twitter channels for the latest news and updates.

The post Genius Group Forced to Suspend Bitcoin Treasury Expansion Due to US Court Ban appeared first on Coin Engineer.