Genius Group Hit with New York Court Ban on Buying Bitcoin
A New York court has temporarily banned Genius Group from fundraising or purchasing Bitcoin, a decision that has already led to the liquidation of part of its reserves.
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Once seen as a bold fusion of AI education and Bitcoin investment strategy, Genius Group now finds itself constrained by a New York court. Triggered by a lawsuit from competitor FatBrain AI, the ruling prevents the Singapore-based firm from buying additional BTC or raising capital for its treasury—leading to early sales from its existing Bitcoin holdings.
Company executives have characterized the legal action and subsequent trading restrictions as a form of competitive sabotage, asserting that there is substantial evidence to support this claim.
As outlined in a formal press release, the court’s decision not only blocks fundraising and Bitcoin acquisition, but has also compelled the firm to sell part of its BTC treasury to keep operations running. Payroll and litigation costs have taken priority.
To date, 10 BTC have been liquidated, reducing the treasury to 430 BTC.
The market reacted fast: Genius shares nosedived from $0.47 to $0.22, slashing its valuation to just 40% of its Bitcoin stash.
Worse, the court now holds the reins on decisions that should be made by the board and tokenholders—raising serious concerns about centralization and governance overreach.
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What’s Next for Genius Group
The court ban has quietly been in place for six weeks—only now made public. The company is appealing the ruling and hoping for a reversal.
Founder Roger James Hamilton didn’t hold back: he claims Genius has played by the book from day one and sees the injunction as a weaponization of law by rivals.
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Faced with mounting pressure from the court ruling, Genius Group has gone into damage control mode:
- Teams trimmed,
- Sponsorships slashed,
- Ads pulled.
The goal? Cut burn fast. But there’s more—under the court’s restrictions, the company was forced to suspend its staff token and share allocation plan, which now conflicts with labor laws in Singapore.
We will also continue to fly the flag for Bitcoin, even when legally banned from building our Bitcoin Treasury. We believe Bitcoin ensures transparency and prevents exactly the kind of wire fraud and shareholder fraud that are the subject of the current lawsuits,
stated Roger James Hamilton.
This isn’t just a problem for Genius Group—it’s a shot across the bow for any company stacking Bitcoin using equity raises. The court’s move could set a precedent. Everything now rests on the outcome of the appeal and whether leadership can pivot fast enough to stay in the game.
Read on: The Man Who Forgot $240M: A Bitcoin Tragedy for the Ages
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