A Singaporean AI company, Genius Group, is in a legal battle that’s forcing it to sell off its Bitcoin. A US court slapped them with a restraining order, putting a stop to some major financial moves.
What Happened?
It all started with a merger between Genius Group and Fatbrain AI in March 2024. Things went south quickly. Genius Group later tried to back out of the deal, accusing Fatbrain AI execs of fraud. This led to arbitration.
But before the arbitration could finish, Fatbrain AI executives went to court and got a temporary restraining order. This order prevents Genius Group from:
- Selling shares
- Raising new funds
- Buying more Bitcoin
The Fallout
This legal headache is causing serious problems for Genius Group. They’ve had to:
- Shut down some parts of their business.
- Halt marketing campaigns.
- Start selling their Bitcoin.
They’ve already sold 10 Bitcoin (out of 440), and warn they might need to sell more if the court order stays in place. The CEO, Roger James Hamilton, is pretty upset about the whole situation.
More Legal Trouble
To make matters worse, there are two more lawsuits against Genius Group and the Fatbrain AI executives. These lawsuits claim securities laws were broken during the merger. The court order is even preventing Genius Group from following its own compensation plans, leading to legal issues in Singapore.
In short, Genius Group is facing a major legal battle that’s impacting its finances and operations significantly. They’re fighting back, but the situation remains uncertain.
