Legal Drama: AI Firm’s Bitcoin Dreams Crushed by Courtroom Shenanigans! 😂⚖️

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In the bustling heart of Singapore, the ambitious artificial intelligence company, Genius Group, finds itself shackled by the iron grip of legal restrictions, all thanks to a recent ruling from the land of the free—yes, the United States! Who knew that Bitcoin could stir such a tempest? 💰

On March 13, a New York District Court, in a fit of judicial fervor, issued a preliminary injunction and a temporary restraining order against our beleaguered Genius Group. These orders, like a stern schoolmaster, forbid the company from selling shares, raising new funds, or even using the pennies from existing investors to buy more Bitcoin. Talk about a buzzkill! 🚫

What Really Happened?

Ah, the plot thickens! This legal saga began with a merger that could rival any soap opera—Genius Group and Fatbrain AI joined forces in March 2024. But lo and behold, by October, Genius Group was already trying to backtrack, claiming fraud and seeking arbitration to dissolve the union. Who knew mergers could be so messy? 🤷‍♂️

Enter stage left: Fatbrain AI executives Michael Moe and Peter Ritz, who, in a dramatic twist, sought a restraining order in February to stop Genius Group from making any more financial moves, especially those pesky Bitcoin purchases. It’s like a game of chess, but with way more drama! ♟️

As a result of these legal shackles, Genius Group has had to pull back on its business operations. They’ve closed divisions, halted marketing campaigns, and—drumroll, please—started liquidating their precious Bitcoin reserves. The horror! 😱

To keep the lights on, Genius Group recently sold 10 Bitcoin from their stash of 440 BTC, which is worth over $23 million. They’ve warned that if this injunction sticks around, they might have to sell even more. It’s like watching a slow-motion train wreck! 🚂💥

In their public statement, they lamented:

Genius is taking all necessary measures to minimize Bitcoin sales but anticipates that it will need to downsize its Bitcoin Treasury in the coming months if the PI remains in place. As of today, we’ve had to reduce our Bitcoin holdings from 440 to 430. Oh, the tragedy!

Broader Legal Challenges and Repercussions

But wait, there’s more! Fatbrain AI shareholders have jumped into the fray, filing two lawsuits against Genius Group and its executives, Moe and Ritz, claiming that federal securities laws were trampled during the merger. It’s a legal buffet, and everyone’s hungry! 🍽️

Genius Group has been handcuffed by the US District Court Southern District of New York, unable to sell shares or raise funds, and specifically banned from buying Bitcoin. This is all happening against the wishes of the Company’s board and shareholders. What a plot twist!

We will keep fighting…

— Roger James Hamilton (@rogerhamilton) April 3, 2025

The repercussions of this injunction are far-reaching. Genius Group claims it’s been forced to break Singaporean law by suspending share-based employee compensation schemes, which were part of existing employment agreements. Talk about a legal pickle! 🥒

In a moment of exasperation, the company’s CEO, Roger James Hamilton, expressed his disbelief:

We especially did not expect that such destructive actions could be successfully achieved through the courts by individuals who were actively working against the interests of our company’s shareholders and Board. What a world!

Featured image created with DALL-E, Chart from Tradingview

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2025-04-05 15:44