{"id":833474,"date":"2025-04-03T08:58:15","date_gmt":"2025-04-03T12:58:15","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/genius-group-blocked-from-raising-funds-and-buying-bitcoin-by-new-york-court\/"},"modified":"2025-04-03T08:58:15","modified_gmt":"2025-04-03T12:58:15","slug":"genius-group-blocked-from-raising-funds-and-buying-bitcoin-by-new-york-court","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/genius-group-blocked-from-raising-funds-and-buying-bitcoin-by-new-york-court\/","title":{"rendered":"Genius Group Blocked from Raising Funds and Buying Bitcoin by New York Court"},"content":{"rendered":"
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\n SINGAPORE, April 03, 2025 (GLOBE NEWSWIRE) — <\/strong>
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\n Genius Group Limited<\/u>
\n <\/a> (NYSE American: GNS) (\u201cGenius Group\u201d or the \u201cCompany\u201d), a leading AI-powered, Bitcoin-first education group,\u00a0today announced that it is being forced to sell its Bitcoin Treasury after having been blocked from selling shares or raising funds, and specifically from using investor funds to buy Bitcoin by the United States District Court Southern District of New York (SDNY).<\/p>\n

As previously reported by the Company, on October 30, 2024 Genius initiated arbitration procedures to terminate its Asset Purchase Agreement (APA) with Fatbrain AI (LZGI), and on December 17, 2024 both parties agreed to a preliminary injunction on the Company\u2019s shares related to the APA (Case 1:24-cv-08468-MKV).<\/em><\/p>\n

This took place after LZGI\u2019s shareholders filed a lawsuit against LZGI and its officers, Michael Moe and Peter Ritz alleging a history of fraud, including in their actions related to the APA (Case 1:24-cv-07551), and after the SEC filed shareholder fraud allegations for defrauding LZGI shareholders amongst others (Case 2:24-cv-00918).<\/p>\n

Further to these filings, on February 14, 2025, Moe and Ritz filed for a Temporary Restraining Order (TRO) and Preliminary Injunction (PI) to prevent Genius from selling any shares, or raising any funds, including through the use of its $150m ATM funding, and specifically from buying Bitcoin. On the same day, the TRO was granted, and on March 13, 2025, the SDNY granted the PI.<\/p>\n

Over the last six weeks, Genius has filed multiple letters and motions to the court explaining that the TRO and PI did not maintain the status quo pending arbitration, that they were based on false statements designed to defraud the court, and the intent of the filing of the TRO and PI was to extort further money from Genius.<\/p>\n

Genius also filed with the court a transcript of a meeting with Ritz and Genius executives recorded in New York on February 27, 2025 in which Ritz explained in detail how he has weaponized the TRO and PI process in order to extort millions more out of Genius to aid his personal scheme to defraud his LZGI shareholders.<\/p>\n

This transcript has also been filed by LZGI\u2019s shareholders in their derivative case against LZGI, Moe and Ritz in the United States District Court Southern District of Florida (Case 1:25-cv-21062-JEM). Genius, which was initially named in both LZGI shareholder lawsuits has subsequently been voluntarily dismissed from both.<\/p>\n

To date, the PI has remained in effect. As a result, Genius has had its financing and Bitcoin Treasury activities blocked by court order for the last six weeks, in direct opposition to the wishes, consent and approvals of the Company\u2019s Board and shareholders. As the injunction also prevents Genius from issuing share compensation to employees as part of their long standing employment agreements, Genius is in the unusual position of being legally compelled by a US court to directly break Singapore law.<\/p>\n

As a result of the PI, which legally blocks Genius from being able to fund its operations, Genius is currently taking the following actions:<\/p>\n