U.S. court freezes Genius Group’s financial activity
A New York federal court has issued an injunction against Genius Group (NYSE American: GNS), prohibiting the Singapore-based company from selling shares, raising funds, or purchasing Bitcoin. The ruling comes amid ongoing legal action linked to Genius Group’s failed acquisition of Fatbrain AI (LZGI), and allegations of shareholder fraud involving executives Michael Moe and Peter Ritz.
The case is part of a wider investigation by the U.S. Securities and Exchange Commission (SEC), which has placed further pressure on the company’s operations and strategic plans.
Bitcoin treasury strategy disrupted
As a direct result of the injunction, Genius Group has been forced to reduce its Bitcoin holdings from 440 BTC to 430 BTC, and may sell more to cover operational costs. The company emphasized that its Bitcoin-first treasury strategy—modeled after MicroStrategy—has now been severely impacted.
The firm had planned to grow its BTC treasury to $120 million using reserves, loans, and its $150 million ATM facility, but these plans are now on hold.
CEO Roger James Hamilton stated that the ruling is preventing the company from executing shareholder-approved strategies and even from issuing employee compensation in stock, which conflicts with Singaporean labor laws.
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
Company pushes back against allegations
Genius Group has filed multiple motions challenging the ruling, accusing plaintiffs of making false claims. The company submitted a recorded transcript of a meeting with Peter Ritz, in which he allegedly outlines a plan to use legal pressure to extract money from Genius.
This evidence is now being used in a separate lawsuit filed in Florida against LZGI and its executives.
In the meantime, Genius Group is cutting marketing costs, closing non-essential divisions, and canceling sponsorships to preserve liquidity.
Stock plunges despite firm’s Bitcoin commitment
Since the injunction, Genius Group’s stock price has plummeted 53%, from $0.47 to $0.22, with its market capitalization now sitting around $33.1 million—well below the value of its Bitcoin holdings, estimated at $46 million.
Despite these setbacks, Hamilton reaffirmed the company’s long-term commitment to Bitcoin, stating:
“We will continue to fly the flag for Bitcoin, even when legally banned from building our Bitcoin Treasury.”
The company has already invested $42 million in BTC and remains one of the few publicly listed firms pursuing an aggressive Bitcoin acquisition strategy. However, with regulatory pressure mounting, Genius Group’s future—and its Bitcoin vision—remains uncertain.
