Court Prohibits Genius Group from Acquiring Bitcoin

The New York District Court has temporarily barred the Singaporean AI firm Genius Group from expanding its Bitcoin holdings, according to a press release.

The ruling is linked to a dispute over the unsuccessful merger between Genius Group and Fatbrain AI, which concluded in March 2024.

The legal proceedings began in October 2024 when Genius Group initiated arbitration against Fatbrain AI, accusing its management of fraud.

In response, representatives of Fatbrain AI secured a temporary court order in February 2025, restricting Genius Group’s financial activities, including the purchase of new Bitcoin.

Genius Group reported that due to the court’s decision, it had to close several divisions, reduce marketing activities, and sell 10 BTC from its reserves, which total 440 coins (~$36 million).

The proceeds from the sale will be used for the company’s operational expenses. The management warned that further reduction of reserves might be necessary if the legal restrictions persist.

Genius Group CEO Roger James Hamilton described the ban as an interference with the shareholders’ authority, asserting that decisions regarding Bitcoin purchases or asset sales should be made by the management and the board of directors.

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

He emphasized that the company “will continue to support the leading cryptocurrency,” despite the restrictions.

In November 2024, Genius Group adopted Bitcoin as its primary treasury asset. The firm pledged to hold 90% of its current and future reserves in cryptocurrency.