A New York court has prohibited Genius Group from selling stock to raise funds to purchase Bitcoin.

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According to ChainCatcher news reported by GlobeNewswire, the NYSE-listed company Genius Group announced that the U.S. District Court for the Southern District of New York (SDNY) has prohibited the company from selling stock to raise funds and also prohibited the use of investor funds to purchase Bitcoin, therefore it will be forced to sell the Bitcoin in its treasury. It is reported that on October 30, 2024, Genius initiated arbitration proceedings to terminate the asset purchase agreement signed with Fatbrain AI (LZGI). LZGI shareholders filed a lawsuit against LZGI and its executives Michael Moe and Peter Ritz. However, on February 14 of this year, Michael Moe and Peter Ritz applied to the court for a Temporary Restraining Order (TRO) and a Preliminary Injunction (PI) to prevent Genius from selling any shares or raising any funds to purchase Bitcoin. The TRO was granted that same day, and the PI was granted on March 13.

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