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Genius Group Forced to Sell Bitcoin Treasury Amid Legal Battles

Genius Group, a leading AI-powered education company, is selling its Bitcoin Treasury due to a court order blocking share sales and funding. Discover the legal challenges and operational changes.
Published on 2025-04-03

Overview of the Situation

Genius Group Limited (NYSE American: GNS), a Bitcoin-first education company, is facing significant legal challenges that have halted its ability to sell shares, raise funds, or purchase Bitcoin. The U.S. District Court for the Southern District of New York (SDNY) granted a preliminary injunction (PI) against the company, effectively blocking access to its $150 million ATM funding facility. This has forced Genius Group to sell its Bitcoin Treasury to sustain operations.

Legal Battles and Restructuring

The legal disputes stem from a failed Asset Purchase Agreement (APA) with Fatbrain AI (LZGI) and subsequent lawsuits alleging fraud against LZGI’s officers, Michael Moe and Peter Ritz. Genius Group has been dismissed from these lawsuits but remains entangled in court proceedings. The company alleges that the injunction was obtained through fraudulent means and is appealing the decision in the Second Circuit Court.

To navigate the funding blockade, Genius Group is:

  • Restructuring operations: Downsizing, closing divisions, and halting non-essential spending.
  • Selling Bitcoin holdings: Reducing its Bitcoin Treasury from 440 to 430 BTC, with further sales anticipated if the injunction remains.
  • Fighting fraud allegations: Highlighting a pattern of fraudulent behavior by Moe and Ritz, which has reportedly harmed multiple companies.

Impact on Shareholders and Operations

The injunction has caused a 53% drop in Genius Group’s stock price, from $0.47 to $0.22, reducing its market cap to just 40% of its Bitcoin Treasury’s value. The company warns that continued restrictions pose a risk to its operations but is taking steps to mitigate these risks.

CEO Roger James Hamilton expressed frustration over the court’s interference, stating that such decisions should be made by shareholders or the Board, not the judiciary. He emphasized the company’s commitment to protecting shareholder interests and upholding Bitcoin’s role in ensuring transparency and preventing fraud.

About Genius Group

Genius Group is a global provider of AI-powered education and workforce solutions, serving 5.4 million users across 100 countries. Its offerings include AI training, tools, and talent development programs for individuals, enterprises, and governments.

For more information, visit www.geniusgroup.net or www.geniusgroup.ai.

This press release contains forward-looking statements. Actual results may differ due to risks and uncertainties.

Contact: investor@geniusgroup.ai

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