Genius Group, the Singapore-based educational technology company that adopted a bitcoin treasury plan, is facing a major financial and legal crisis after a U.S. court blocked it from raising funds, issuing shares or buying more bitcoin.
That decision has inevitably forced the company to sell some of its bitcoin holdings, scale back operations and file an appeal. At the heart of the issue is a legal dispute with Fatbrain AI, a merger deal that didn’t go according to plans.
Genius Group and Fatbrain AI completed that merger in March 2024. But by October, Genius Group was trying to cancel the deal, accusing Fatbrain AI executives of fraud. That led to arbitration and a very public—and ongoing—legal battle.
In February 2025, Fatbrain AI executives Michael Moe and Peter Ritz got a Temporary Restraining Order (TRO) and a Preliminary Injunction (PI).
Those court orders, granted by the U.S. District Court for the Southern District of New York in March, froze Genius Group’s ability to raise funds, sell shares or invest further in bitcoin.
That puts the company’s bitcoin-first strategy on hold. Genius Group had bought 110 Bitcoin for $10 million in November 2024, aiming to hold up to 90% of its reserves in bitcoin—worth $120 million.
Genius Group once held 440 bitcoin. Now it’s already sold 10 of those to keep daily operations running. “Genius is taking all necessary measures to minimize bitcoin sales,” the company said in a statement. But if the injunction remains in place, further sales may be necessary.
Related: AI Education Firm Genius Group Adopts Bitcoin as Primary Treasury Reserve
Despite that setback, Genius Group is doubling down on its commitment to Bitcoin. “We will also continue to fly the flag for Bitcoin, even when legally banned from building our Bitcoin Treasury,” says CEO Roger James Hamilton.
The legal restrictions have had a huge impact on the company’s finances and operations. Genius Group has closed business divisions, stopped marketing and sponsorship efforts, and suspended share-based compensation for employees. Hamilton said:
“We never dreamed that it was possible that a U.S. court could block the company from being able to issue shares, raise funds or buy bitcoin – all actions that would normally be decided by a public company’s shareholders or Board rather than a court.”
He also warned that the court’s order could be forcing the company to breach Singaporean labor laws which require the company to issue shares as part of employee compensation agreements.
In addition to the court orders, Fatbrain AI shareholders have filed lawsuits against Moe, Ritz and Fatbrain AI itself, accusing them of fraud and securities violations. Genius Group was named in those lawsuits but was later dismissed in February 2025.
Genius Group has since filed a motion to lift the restrictions and an appeal with the U.S. Court of Appeals for the Second Circuit to regain control of its financial decisions.
The company says the court’s decision was based on false statements and has submitted evidence including a transcript of a meeting with Peter Ritz which it says shows an attempt to use the court order as leverage against Genius Group.
That same transcript has also been included in the lawsuits filed by Fatbrain shareholders.
Since the TRO and PI were issued, Genius Group’s stock has tanked. The stock price has fallen 53% from $0.47 in February to $0.22 in April according to TradingView.
At its peak in June 2022, the stock traded at $96 but has now lost over 99% of its value.
The company says its market cap is now less than the value of its remaining bitcoin holdings, and it’s in a world of financial hurt.
