Singaporean firm Genius Group will have to implement an emergency strategy change in its Bitcoin (BTC) plans, following the prohibitions imposed by a ruling issued by the United States District Court for the Southern District of New York.
As noted in a statement published on its official website on April 3, the court barred the company from moving forward with incorporating the digital currency into its treasury, preventing it from selling shares or raising funds to purchase BTC.
As a result, Genius Group, which planned to follow Strategy's lead by purchasing the leading cryptocurrency, announces it will be forced to sell some of its Bitcoin holdings in order to gain liquidity. All of this against its will. Its acquisitions, which already totaled 440 BTC, will be reduced to 430 Bitcoin.
Last November, the company announced its plans to follow Michel Saylor's advice and do the same as Strategy. Satoshi Nakamoto's creation would become its main reserve asset.
The idea was to use its marketplace offerings to acquire $120 million in bitcoin, which would be held long-term. However, the company has become embroiled in litigation, which has complicated its plans.
According to reports, amid a dispute between partners and shareholders, on February 14, 2025, officials of the publicly traded artificial intelligence company Fatbrain AI (LZGI) filed a request for restraining orders against Genius. The action is led by partners Michael Moe and Peter Ritz.
In this way, through a lawsuit, they asked the United States court to issue a Temporary Restraining Order (TRO) and a Preliminary Injunction (PI) to prevent Genius from selling shares or raising funds to acquire bitcoin.
Both requests were granted by the court, the statement added, indicating that this fact was ratified in a court order issued on March 13.
To date, the court order has remained in effect. As a result, Genius has had its Bitcoin funding and treasury activities blocked by court order for the past six weeks, in direct contravention of the wishes, consent, and approval of the company's Board of Directors and shareholders.
In this way, Genius not only sees its goals thwarted, but also faces a series of limitations.
The company is also taking steps to scale back its operations, including closing several divisions and canceling all event sponsorships, marketing activities, and investment activities until it can legally resume its growth plans. All of this, despite its headquarters in Singapore.
"We never imagined that a US court would be able to prevent the company from issuing shares, raising funds, or purchasing bitcoin—actions that would typically be decided by the shareholders or board of directors of a publicly traded company, not a court," said Genius Group CEO Roger James Hamilton.
Meanwhile, the company is seeking to have the restrictions lifted. This week, it filed an emergency motion to vacate the court order and request an immediate administrative stay before a U.S. Court of Appeals. It is awaiting the outcome of the appeal.
