Singapore-based artificial intelligence firm Genius Group has been temporarily barred from expanding its Bitcoin treasury after a U.S. court issued a preliminary injunction (PI) and temporary restraining order (TRO), preventing the company from selling shares, raising funds, or using investor capital to acquire more Bitcoin.
The injunction, handed down by a New York District Court on March 13, stems from an ongoing legal battle over Genius Group’s merger with Fatbrain AI. In an April 3 statement, Genius Group confirmed the restrictions, which have significantly impacted its operations.
Genius Group and Fatbrain AI completed their merger in March 2024, but by October 30, Genius sought to terminate the deal through arbitration, alleging fraudulent actions by Fatbrain AI executives. In February, Fatbrain AI executives Michael Moe and Peter Ritz filed for a court order blocking Genius Group from key financial activities, pending the arbitration’s resolution.
The court’s ruling has forced Genius Group to shut down some divisions, halt marketing efforts, and liquidate part of its Bitcoin holdings. To sustain operations, the company sold 10 Bitcoins from its 440-Bitcoin reserve, valued at over $23 million at current prices. Further sales remain a possibility if the injunction stays in effect.
“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.
Beyond financial constraints, Genius Group argues that complying with the U.S. court order forces it to violate Singaporean laws by preventing share-based compensation for employees, a key component of its employment agreements.
Despite the restrictions, Hamilton reaffirmed the company’s commitment to Bitcoin, stating it would “continue to fly the flag” for the cryptocurrency even while legally barred from expanding its holdings.
Genius Group entered the Bitcoin market in November 2024, purchasing 110 Bitcoins for $10 million. The company had set a long-term goal of holding 90% or more of its reserves in Bitcoin, aiming for an initial target of $120 million—a strategy that previously drove its stock price up by 66%.
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