Genius Group Forced to Dump Bitcoin After Court Smackdown

Holy smokes! Genius Group, the AI-powered education maestros, just got hit with a legal bombshell. A U.S. court has thrown a wrench in their plans, blocking them from selling shares, raising cash, or snagging more Bitcoin. Now, they're scrambling to sell off their precious Bitcoin stash just to keep the lights on!

The U.S. District Court for the Southern District of New York dropped the hammer on March 13, slamming Genius Group with a preliminary injunction. This legal grenade has blown up their $150 million funding plan and their Bitcoin-first strategy. Ouch!

With their backs against the wall, Genius Group had no choice but to offload 10 of their 440 Bitcoins, leaving them with a measly 430. Talk about a crypto fire sale!

Multiple Lawsuits

This legal nightmare all started when Genius Group tried to bail on an Asset Purchase Agreement with Fatbrain AI. But that deal has turned into a legal minefield, with lawsuits popping up left and right.

In October 2024, Genius Group kicked off arbitration to ditch the agreement. By December, both companies were locked in a legal tango over the APA. But things got even messier when Fatbrain AI shareholders started suing the company and its bigwigs, Michael Moe and Peter Ritz, claiming they pulled a fast one with the APA. And if that wasn't enough, the SEC jumped in, accusing Fatbrain AI of shareholder fraud, according to Genius Group.

Moe and Ritz fought back, trying to get a Temporary Restraining Order and a preliminary injunction against Genius Group. And guess what? The court gave it to them on February 14. Boom!

False Statements

Genius Group is crying foul, saying the injunction is based on a bunch of lies. They've filed motions to get the restrictions lifted and even dropped a transcript of a meeting with Ritz, where he allegedly spilled the beans on a plan to use the court order to shake down Genius Group for cash.

And get this - Fatbrain AI shareholders have used that same transcript in their lawsuit against Moe and Ritz down in Florida. It's like a legal soap opera!

Roger James Hamilton, the CEO of Genius Group, is shocked that a U.S. court could mess with their financial moves. "We never dreamed that it was possible that a U.S. 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," he said, still reeling from the blow.

This court order has forced Genius Group to totally shake up their operations. They're downsizing, closing divisions, and putting the brakes on sponsorships, marketing, and investments. And to make matters worse, they can't even give their employees share-based compensation, which they say is breaking Singaporean labor laws.

But Hamilton isn't backing down. "We will not bend to fraudsters and market manipulators that are themselves the subject of multiple lawsuits for fraud and misconduct," he declared, ready to fight back.

Since the restraining order dropped, Genius Group's share price has tanked 53%, and their market cap is now just 40% of their Bitcoin Treasury value. They've filed an emergency motion with the U.S. Court of Appeals for the Second Circuit, hoping to overturn the injunction and get back in the game.

Genius Group went all-in on Bitcoin back in November 2024, planning to hold it as their main treasury reserve asset. Even though they've been forced to sell some of their stash, they're still all about Bitcoin and believe in its long-term value. It's a wild ride, but they're not giving up on their crypto dreams just yet!