Genius Group Blocked From Growing Bitcoin Treasury Amid US Court Battle

Singapore-based AI firm Genius Group has hit a legal wall in its ambitious plan to expand its Bitcoin reserves. A U.S. court has temporarily barred the company from issuing shares, raising capital, or purchasing more Bitcoin—crippling the core of its Bitcoin treasury strategy.

The decision stems from an ongoing legal dispute tied to Genius Group’s merger with Fatbrain AI, a U.S.-based firm it acquired in March 2024. The company was doing great at the time, after raising $118 million earlier in 2021.

Court Injunction Halts Bitcoin Strategy

On March 13, the New York District Court issued both a temporary restraining order (TRO) and a preliminary injunction (PI) following legal action initiated by Fatbrain AI executives Michael Moe and Peter Ritz.

They allege that Genius Group breached agreements and committed fraud, prompting them to seek legal protections while the matter undergoes arbitration.

The injunction has not only frozen the company’s expansion plans but forced Genius Group into tough operational decisions—such as selling 10 of its 440 Bitcoin holdings, currently valued over $23 million, to keep the lights on.

“We never imagined a U.S. court could block us from taking shareholder-approved actions like raising funds or expanding our Bitcoin treasury,” said CEO Roger James Hamilton, reflecting on the far-reaching consequences of the legal freeze. “We’ll keep flying the flag for Bitcoin, even if the court says we can’t add to it.”

Operations Cut as Legal Pressure Mounts

Genius Group has been forced to shut down several divisions, reduce marketing efforts, and even violate Singaporean labor laws by pausing employee share-based compensation—an obligation built into many employment contracts.

Despite its efforts to avoid further Bitcoin sales, the company admitted in its April 3 statement that it may need to liquidate more of its digital reserves if the injunction remains in place.

Fatbrain AI’s shareholders have also escalated the legal drama, filing two lawsuits in April—one against Fatbrain’s own executives and another implicating Genius Group—for alleged violations of federal securities laws related to the merger.

Genius Group made waves last November when it first disclosed its Bitcoin treasury strategy, starting with a $10 million purchase of 110 BTC. It pledged to commit over 90% of its reserves to Bitcoin, setting a goal of $120 million in holdings.

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