According to ChainCatcher, citing GlobeNewswire, the NYSE-listed company Genius Group has been prohibited by the United States District Court for the Southern District of New York (SDNY) from selling stocks to raise funds and from using investor funds to purchase Bitcoin, thus being forced to sell its Bitcoin reserves.

It is reported that on October 30, 2024, Genius initiated an arbitration procedure to terminate the asset purchase agreement with Fatbrain AI (LZGI). LZGI shareholders filed a lawsuit against LZGI and its executives Michael Moe and Peter Ritz. However, on February 14 this year, Michael Moe and Peter Ritz applied to the court for a Temporary Restraining Order (TRO) and Preliminary Injunction (PI) to prevent Genius from selling any shares or raising funds to purchase Bitcoin. The TRO was approved that day, and the preliminary injunction was approved on March 13.