U.S. Court Prevents Singapore’s Genius Group from Increasing BTC Assets

A U.S. court order has placed a temporary restriction on Genius Group, an artificial intelligence firm based in Singapore, preventing it from increasing its Bitcoin reserves.

The firm announced on April 3 that a preliminary injunction (PI) and temporary restraining order (TRO) were issued by a New York District Court on March 13, which limits it from selling shares, obtaining capital, or utilizing crypto holder funds for more Bitcoin purchases.

This court ruling arises from an ongoing legal battle involving Genius Group and Fatbrain AI, related to a merger and acquisition agreement that both companies finalized in March 2024.

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Genius Group Aims to Abort Merger, Accuses Fatbrain AI Executives of Fraud

On October 30, Genius Group commenced arbitration to dissolve the merger, claiming fraudulent behavior by Fatbrain AI executives.

In retaliation, executives Michael Moe and Peter Ritz from Fatbrain AI sought the TRO and injunction in February, effectively halting Genius Group’s capacity to increase its BTC assets and engage in standard corporate operations until the arbitration concludes.

These limitations have severely affected the functioning of Genius Group. The organization has terminated business units, ceased marketing activities, and had to sell 10 Bitcoin from its holdings—previously comprising 440 Bitcoin valued over $23 million.

Additional BTC sales may occur if the injunction is upheld.

“Genius is implementing all necessary measures to limit BTC sales,” stated the company in its update, noting it might have to further reduce its treasury in the upcoming months.

The legal clash has also given rise to further litigations.

Genius Group has been blocked by the US District Court Southern District of New York from selling shares or raising funds, and specifically banned from buying BTC, in direct opposition to the wishes and approvals of the Company’s board and shareholders.

We will keep fighting… pic.twitter.com/Lk6uXzfCx6

— Roger James Hamilton (@rogerhamilton) April 3, 2025

In April 2024, shareholders of Fatbrain AI initiated two legal actions against both Genius Group and Fatbrain executives, alleging breaches of federal securities statutes. However, Genius Group was voluntarily excluded from these lawsuits in February.

In an unexpected development, Genius Group claims that the U.S. court order is causing it to violate Singapore law by hindering its ability to issue shares promised to employees as part of their compensation packages. CEO Roger James Hamilton voiced concerns regarding the court’s jurisdiction.

“We never imagined that a U.S. court could prevent the company from issuing shares, raising funds or purchasing BTC — actions that should typically be determined by a public company’s shareholders or Board, and not a court.”

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Genius Group CEO Reiterates Commitment to BTC Amid Legal Challenges

Regardless of the legal challenges, Hamilton reaffirmed the company’s dedication to BTC, asserting it will “continue to champion Bitcoin” despite current limitations.

Genius Group originally began amassing its Bitcoin treasury in November 2024, securing 110 Bitcoin for $10 million.

The company has publicly committed to maintaining at least 90% of its reserves in BTC, aiming for a $120 million treasury—a decision that previously caused its stock to surge by 66%.

However, shares have since dropped, closing down nearly 10% at $0.23 and declining further after hours. From a peak exceeding $96 in June 2022, the stock has now lost over 99% of its value.

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