Genus Group, which is based in Singapore, is facing great restrictions on the expansion of bitcoin’s possessions due to a modern legal ruling in the United States.
accident press release It revealed that on March 13, a local court in New York issued a preliminary order and a temporary restriction against the company. These applications specifically prevent Genius Group from selling shares, collecting new money, or using current investors ’money to purchase additional Bitcoin.
What really happened?
The legal procedure stems from a controversial integration between Genius Group and FATBrain AI, which was completed in March 2024. After the merger, the genius group began arbitration procedures to end the agreement in October of the same year, accusing the executives of FATBrain AI for fraud.
Later, FATBrain AI Michael MEE and PEER Ritz’s executive managers have sought to obtain a temporary restriction in February to prevent genius group from engaging in certain financial activities, including more Bitcoin purchases, until the arbitration is resolved.
Because of the legal restrictions imposed, Genus Group has been forced to expand the scope of various aspects of its commercial operations. The company stated that it had closed many divisions, and stopped marketing campaigns, especially, began to liquidate its bitcoin reserves.
To maintain operational liquidity, Genius Group recently sold 10 Bitcoin out of its 440 BTC, which is currently valued at more than $ 23 million. The company has warned that it may need more Bitcoin’s holdings if the irritable matter remains in place.
The company clarified in its general statement.
Genus takes all measures necessary to reduce Bitcoin sales, but it is expected to need to reduce the size of the Bitcoin wardrobe in the coming months if PI remains in place. As on today’s date, the company had to reduce Bitcoin’s holdings from 440 Bitcoin to 430 Bitcoin.
More wider legal challenges
In addition to the gangway order, AI FATBrain shareholders submitted Judicial cases Against Genius Group, FATBrain AI MEE and Ritz CEOs. These lawsuits, which started in April 2024, claim that federal securities laws have been violated during the integration process.
Genus Group was banned by the South American Provincial Court in New York from selling shares or collecting money, specifically prevented from buying bitcoin, in direct opposition to the desires and approvals of the company’s board of directors.
We will continue to fight … pic.twitter.com/lk6uxzfcx6
– Roger James Hamilton (@Rogerhamton) April 3, 2025
The impact of the irritable matter extends beyond the financial operations; Genus Group claims that it has been forced to break the Singaporean law by suspending the stock -based employee compensation plans, which were part of the current recruitment agreements.
The CEO of the company, Roger James Hamilton, expressed his frustration and amazement, saying:
We did not especially expect that such destroyed measures will be achieved successfully through the courts by individuals who were actively acting against the interests of our company’s shareholders and the Board of Directors.
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The post Legal Battle Forces Singapore-based AI firm to Halt Bitcoin Purchases—What Happened? first appeared on Investorempires.com.
