Genius Group, an AI firm based in Singapore, is facing a temporary ban on expanding its Bitcoin holdings due to a U.S. court order. This order prohibits the company from selling shares, raising funds, or using investor money to purchase more Bitcoin. The court’s decision is linked to Genius Group’s merger with Fatbrain AI, which has led to legal disputes including allegations of fraud. As a result, the company has been forced to close certain divisions and sell some of its Bitcoin to manage its finances. Genius Group’s CEO expressed concerns about the implications of a U.S. court impacting their operations in Singapore, but they remain committed to their Bitcoin strategy.
Singapore-based artificial intelligence company Genius Group is currently facing challenges in expanding its Bitcoin treasury due to a court ruling in the United States. A New York District Court issued a preliminary injunction and temporary restraining order that restricts the firm from selling stock, raising funds, and using investor money to buy more Bitcoin.
The legal troubles stem from a merger between Genius Group and Fatbrain AI, which was completed in March 2024. However, by October, Genius Group had filed for arbitration, claiming that Fatbrain AI executives engaged in fraudulent activities related to the merger deal. Recently, Fatbrain AI’s executives, Michael Moe and Peter Ritz, sought the restraining order that resulted in these restrictions on Genius Group.
As a result of the injunction, Genius Group has had to shut down certain divisions, stop Marketing efforts, and sell some of its Bitcoin reserves—10 out of 440 Bitcoin valued at approximately $23 million—to keep operations running. The firm anticipates needing to sell more Bitcoin in the coming months if the legal restrictions continue.
Genius Group claims that following the US court’s order may force them to violate Singaporean laws, specifically by halting share compensation for employees. CEO Roger James Hamilton expressed disbelief that a US court could impose such limitations on what should be decisions made by the company’s shareholders or board.
Despite these hurdles, Hamilton affirmed that Genius Group will continue to support Bitcoin initiatives. The company’s share price has seen a significant decline, down almost 10% recently, which is a stark contrast to its peak of over $96 in June 2022.
As Genius Group navigates these complex legal challenges, the implications for both their operations and the broader cryptocurrency landscape are still unfolding.
Tags: Genius Group, Bitcoin treasury, court order, merger, Fatbrain AI, cryptocurrency, Singapore law, financial news.
FAQs about Genius Group’s Bitcoin Ban
What does it mean that Genius Group is banned from buying Bitcoin?
This means that Genius Group cannot purchase any more Bitcoin. This decision could be due to regulatory issues or internal company policies.
Why was Genius Group banned from buying more Bitcoin?
The exact reason for the ban isn’t clear yet. It might be related to regulations in the country where they operate or concerns about Market risks.
How will this ban affect Genius Group’s business?
The ban may limit their ability to invest in or use Bitcoin in their operations. It could impact their financial strategies or growth plans related to cryptocurrency.
Is Genius Group still allowed to hold its existing Bitcoin?
Yes, they can still keep the Bitcoin they already own. The ban only prevents them from buying more.
What should investors know about this ban?
Investors should keep an eye on how this situation develops. It’s essential to understand the reasons behind the ban and how it might impact the company’s future performance in the cryptocurrency Market.
