Genius Group Blocked From Increasing Bitcoin Holdings Amid Legal Dispute

Singapore-based AI firm Genius Group has been temporarily barred from increasing its Bitcoin holdings due to a U.S. court order linked to an ongoing dispute with Fatbrain AI.

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 Bitcoin, 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 an April 3rd statement, Genius Group said a New York District Court issued a preliminary injunction and temporary restraining order on March 13th.

The order prevents the company from selling shares, raising capital, or using investor funds to buy more Bitcoin while arbitration is underway.

The dispute stems from a merger agreement between Genius Group and Fatbrain AI completed in March 2024.

By October, Genius Group initiated arbitration to terminate the deal, alleging misconduct by Fatbrain executives.

In February, Fatbrain executives Michael Moe and Peter Ritz sought a court order to block Genius Group from further financial activities, including Bitcoin purchases, during arbitration.

As a result, Genius Group said it has closed business units, paused marketing, and sold 10 of its 440 Bitcoins—currently valued at over $23 million—to support operations. It warned that further sales may be needed if restrictions remain.

“Genius is taking all necessary measures to minimize Bitcoin sales but anticipates that it will need to downsize its Bitcoin Treasury in the coming months in the event the PI remains in place,” the company stated.

In April, Fatbrain shareholders filed lawsuits against Fatbrain executives and Genius Group, alleging federal securities law violations related to the merger.

Genius Group also said the injunction has disrupted share-based compensation to employees, which it claims violates Singaporean employment laws.

“We never dreamed that it was possible that a US 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,” said Genius Group CEO Roger James Hamilton.

Hamilton added that the company will “continue to fly the flag for Bitcoin,” despite the current restrictions.

Genius Group began building its Bitcoin treasury in November 2024 with an initial $10 million purchase of 110 Bitcoin.