17 hours ago
Singapore-based artificial quality steadfast Genius Group says it’s temporarily barred from expanding its Bitcoin treasury aft a US tribunal bid has banned it from selling shares, raising funds and utilizing capitalist funds to bargain much Bitcoin.
A New York District tribunal issued the preliminary injunction (PI) and impermanent restraining bid (TRO) connected March 13 successful transportation with a broader quality surrounding its merger with Fatbrain AI, the Genius Group said successful an April 3 statement.
Fatbrain AI and Genius Group completed a merger and acquisition statement successful March 2024, but by Oct. 30, Genius initiated arbitration procedures to terminate, alleging fraud by Fatbrain AI executives connected to the deal.
Source: Roger James Hamilton
In February, Fatbrain AI executives Michael Moe and Peter Ritz filed for the TRO and imperishable injunction, blocking Genius Group from selling its shares, raising funds and buying much Bitcoin pending the arbitration outcome.
The injunction has forced Genius Group to adjacent divisions, halt selling activities and merchantability 10 Bitcoin (BTC) from its stash of 440, worthy implicit $23 cardinal astatine existent prices, to proceed backing its operations. The steadfast hasn’t ruled retired much income successful the future.
“Genius is taking each indispensable measures to minimize Bitcoin income but anticipates that it volition request to downsize its Bitcoin Treasury successful the coming months successful the lawsuit the PI remains successful place,” the steadfast said.
Fatbrain AI shareholders besides filed 2 lawsuits against Fatbrain AI executives, including Moe and Ritz, and Genius Group, successful April 2024, alleging usurpation of national securities laws successful transportation with the merger, ASX instrumentality said successful an October statement.
Two shareholder lawsuits against Fatbrain AI alleged behaviour during the merger was fraudulent, which defrauded shareholders of $30 million. Source: ASX Law
Genius Group was subsequently voluntarily dismissed from the suits connected Feb. 14.
Genius Group claims it’s breaking Singapore instrumentality by pursuing order
Genius Group says the US tribunal injunction has besides forced it to interruption Singapore instrumentality by halting stock compensation to employees arsenic portion of its employment agreements.
“We ne'er dreamed that it was imaginable that a US tribunal could artifact the institution from being capable to contented shares, rise funds oregon bargain Bitcoin — each actions that would usually beryllium decided by a nationalist company's shareholders oregon Board alternatively than a court,” said Genius Group CEO Roger James Hamilton.
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He said the steadfast volition “continue to alert the emblem for Bitcoin,” adjacent erstwhile legally banned from gathering retired its treasury.
Fatbrain AI didn’t instantly respond to Cointelegraph’s petition for comment.
Artificial quality steadfast Genius Group archetypal announced successful November 2024 that it had taken the archetypal steps to physique a Bitcoin treasury by purchasing 110 Bitcoin for $10 million.
The steadfast had earlier announced its wide extremity of committing 90% oregon more of its existent and aboriginal reserves to beryllium held successful Bitcoin, with an archetypal people of $120 million, which saw the banal terms surge by 66%.
Genius Group’s stock terms is down 9.80% successful the past trading league to $0.23, with a further 3.74% driblet aft the doorbell to $0.22, Google Finance information shows.
Genius Group’s stock terms went down during the past trading league and aft the bell. Source: Google Finance
The banal deed an all-time precocious of implicit $96 successful June 2022 but has since mislaid implicit 99% of its value.
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