Genius Group Sells Bitcoin After Court Order
Genius Group Liquidates Bitcoin Holdings
Genius Group, an AI-powered education company, has announced it must sell its Bitcoin holdings following a US court order. The order, issued by the US District Court Southern District of New York on March 13th, prevents the company from selling shares, raising funds, or purchasing Bitcoin.
Key Developments:
- Court Injunction: A preliminary injunction blocks Genius Group from key financial actions.
- Bitcoin Sales: The company has already sold 10 Bitcoin to fund operations, reducing its holdings from 440 to 430 Bitcoin.
- Market Impact: Since the injunction, Genius Group's share price has dropped 53%, reducing its market capitalization to 40% of its Bitcoin treasury value.
- Ongoing Legal Dispute: The court order stems from legal proceedings between Genius Group and entities associated with Fatbrain AI, involving allegations of fraud related to an Asset Purchase Agreement (APA).
- Appeal: Genius Group is appealing the injunction to the US Court of Appeals for the Second Circuit.
According to Genius Group CEO Roger James Hamilton, the court's decision to restrict share sales, fundraising, and Bitcoin purchases was unexpected. The company is now downsizing, closing divisions, and halting sponsorships, marketing, and investments.
Genius Group initially adopted a "Bitcoin-first" strategy in November 2024, aiming to acquire $120 million worth of Bitcoin for its treasury. Despite the forced sales, the company remains committed to Bitcoin, viewing it as a transparent asset that helps prevent fraud.
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