Genius Group of Singapore, an artificial intelligence company that specializes in Bitcoins, has been temporarily banned from adding to its Bitcoin Treasury. A US court ruling had prohibited it from issuing shares or raising funds as well as using funds from investors for the purchase of more Bitcoins.
The New York District Court issued the temporary restraining and preliminary injunction order on 13 March in connection with an underlying dispute involving the Genius Group’s merger with Fatbrain AI. said In a statement dated April 3,
Fatbrain AI and Genius Group completed A merger and acquisition agreement was signed in March 2024. However, by October 30, Genius had initiated arbitration proceedings to end the contract, claiming fraud on behalf of Fatbrain AI executives involved with the deal.
Source: Roger James Hamilton
Michael Moe (Fatbrain AI) and Peter Ritz (Genius Group) filed a permanent injunction and TRO on February 1, preventing Genius Group’s shares from being sold and raised funds. buying more Bitcoin In the meantime, while waiting for an arbitration result.
Genius Group was forced by the injunction to shut down its divisions, stop all marketing and sales activities (10)BTC( ) its stash of 440The company will use the proceeds from this sale, which is worth more than $23 million in current prices, as a means to fund its operation. It hasn’t excluded the possibility of future sales.
“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 firm stated.
Fatbrain AI shareholders also filed two lawsuits in April 2024 against Fatbrain AI executives including Moe and Ritz and Genius Group alleging violation federal securities laws with respect to the merger. ASX law said In an October Statement
Fatbrain AI was sued by two shareholders who claimed that their conduct in the merger had been fraudulent and cheated them out of $30,000,000. Source: ASX Law
Genius Group subsequently was dismissed from these suits on 14th February.
Genius Group says it has broken Singapore laws by obeying order
Genius Group claims that the US injunction forced them to violate Singapore laws by stopping share payments to its employees.
“We never dreamed that it was possible that a US court could block the company from being able to issue shares, raise funds or buy Bitcoin — all actions that would normally be decided by a public company’s shareholders or Board rather than a court,” Roger James Hamilton, CEO of Genius Group.
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He claimed that the company will “continue to fly the flag for Bitcoin,” Even when it is legally prohibited from doing so.
Fatbrain AI has not responded to Cointelegraph’s immediate request for a comment.
Genius Group announced its first artificial intelligence project in November 2024. taken the first steps to build a Bitcoin treasury Buy 110 Bitcoins at $10 million.
The firm announced earlier its goals for the future. committing 90% or more Bitcoin as a reserve for current and future funds, initially aiming at $120 million. Stock prices soared 66%.
Google Finance’s data shows that the share price of Genius Group fell 9.80% to $0.23 in the previous trading session, and then dropped another 3.74% to $0.22 after the closing bell. shows.
Genius Group share prices fell in the final trading session, and also after the bell. Source: Google Finance
In June 2022, the stock reached an all-time peak of $96. Since then it has lost more than 99% of its original value.
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Source: cointelegraph.com
