TL;DR
- Tech company Genius Group received a U.S. court order prohibiting it from purchasing more Bitcoin or raising funds, amid a legal dispute with Fatbrain AI.
- Genius says the restriction violates Singaporean laws and prevents it from fulfilling employee stock agreements as part of employment contracts.
- Despite the setback, Genius stands firm on its Bitcoin-centric strategy and aims to maintain BTC as the foundation of its financial vision.
Singapore-based artificial intelligence firm Genius Group has been temporarily blocked by a New York court from continuing its aggressive Bitcoin accumulation strategy. The court issued the order on March 13 as part of an ongoing legal dispute tied to a failed merger with Fatbrain AI, which collapsed in October 2024 following allegations of fraud.
The court’s preliminary injunction not only bars Genius from issuing new shares or raising funds, but also prevents the company from using investor capital to purchase additional Bitcoin. Genius currently holds 440 BTC, worth over $23 million at current prices, and has recently sold 10 BTC to keep its operations afloat, a move that might be repeated if the order remains active for an extended period.
A Legal Conflict with Global Repercussions
Genius Group CEO Roger James Hamilton called the injunction an unprecedented interference, claiming it even forces the company to break Singaporean law by halting the issuance of stock-based compensation promised to employees.
“We never imagined a U.S. court could restrict decisions that are usually made by shareholders or the company’s board,”
said Hamilton.
The dispute began after Genius Group and Fatbrain AI announced a merger in March 2024. However, by October, Genius initiated arbitration proceedings, accusing Fatbrain executives of fraudulent behavior. In response, Fatbrain filed for a temporary restraining order and permanent injunction, aiming to freeze Genius’s financial activities until arbitration concludes. Although Genius was removed from those lawsuits in February, the court order remains in effect, raising concern among investors .
Bitcoin Remains Central to Its Vision
Back in November, Genius revealed plans to convert up to 90% of its reserves into Bitcoin, a move that led to a 66% surge in its stock price at the time. Today, however, shares have plummeted to $0.22, a dramatic fall from their all-time high of over $96 in June 2022.
Despite the market decline and legal hurdles, Genius Group remains committed to its Bitcoin strategy. For Hamilton, Bitcoin represents not just an investment, but the foundation of a more decentralized, transparent financial model free from traditional banking systems. In his words:
“We will continue to fly the flag for Bitcoin, even if we are legally banned from doing so.”
