Genius Group, a Singapore-based education and technology company, has been ordered by a U.S. court to sell its Bitcoin holdings.
This decision comes as part of a legal battle that has placed severe financial restrictions on the company, blocking it from raising funds, issuing new shares, or acquiring more Bitcoin.
The U.S. District Court for the Southern District of New York granted a preliminary injunction against Genius Group, preventing the company from generating revenue through stock sales. The case stems from a failed deal between Genius Group and Fatbrain AI, which led to fraud allegations from shareholders and an ongoing investigation by the SEC.
As a result of the legal dispute, a Temporary Restraining Order (TRO) has been issued, forcing Genius Group to begin liquidating its Bitcoin reserves. Reports suggest that the conflict involves allegations of a scheme to misuse legal procedures to extort millions from the company. Consequently, the court order not only restricts financial activities but also mandates the sale of Bitcoin assets.
Since the ruling, Genius Group’s Bitcoin reserves have dropped from 440 BTC to 430 BTC, and the company’s stock has taken a significant hit, plummeting by 53% from $0.47 to $0.22. Its market capitalization now accounts for just 40% of the value of its remaining Bitcoin treasury.
Genius Group has been one of the corporate entities actively investing in Bitcoin, adopting a Bitcoin-first strategy back in November 2024 by designating the cryptocurrency as its primary treasury asset. CEO Roger James Hamilton has been a vocal proponent of this approach, inspired by MicroStrategy’s model. However, the court’s decision now threatens the company’s strategy and could force it to rethink its Bitcoin acquisition plans.
The legal battle has raised questions about the risks faced by companies that adopt a Bitcoin-centric financial strategy. While firms like MicroStrategy and Tesla continue to see Bitcoin as a hedge against economic instability, the Genius Group case highlights the potential legal pitfalls. Industry experts note that as long as companies comply with regulatory guidelines, they are unlikely to face similar challenges. However, the situation has sparked renewed debate over the implications of holding significant Bitcoin reserves during legal disputes.
Author
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
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