Genius Group Faces Court Restrictions on Stock Sales and Bitcoin Purchases

According to Odaily, Genius Group, a company listed on the New York Stock Exchange, has been prohibited by the U.S. District Court for the Southern District of New York from selling stocks to raise funds and from using investor money to purchase Bitcoin. Consequently, the company will be compelled to sell the Bitcoin held in its treasury. On October 30, 2024, Genius initiated arbitration proceedings to terminate its asset purchase agreement with Fatbrain AI (LZGI). In response, LZGI shareholders filed a lawsuit against LZGI and its executives, Michael Moe and Peter Ritz. On February 14 of this year, Moe and Ritz sought a temporary restraining order (TRO) and a preliminary injunction (PI) from the court to prevent Genius from selling any shares or raising funds to buy Bitcoin. The TRO was approved on the same day, and the preliminary injunction was granted on March 13.