Genius Group says legal blocks ‘impacting’ operating business, growth plans

The company said, “In January 2025, the Company proceeded with arbitration with Fatbrain AI, with the Company’s shares related to the LZGI asset purchase agreement subject to a mutually agreed Preliminary Injunction. The Company continued to strengthen its balance sheet with the growth of its Bitcoin Treasury to 440 Bitcoin. In February 2025, LZGI subsequently filed an additional PI to enjoin the Company from selling shares, raising shareholder funds and buying Bitcoin. This was granted by the United States Court for the Southern District, first as a Temporary Restraining Order in February, 2025 and then as a PI in March, 2025. The Company 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. As of today’s date, the PI has remained in effect. The Company has subsequently filed an appeal with the Second Circuit, and a hearing has been granted and scheduled for early May. In relation to the Company’s allegations of fraud and extortion, on March 31, 2024, the Company filed a lawsuit against Peter Ritz and Michael Moe as the controlling officers and directors of LZGI International under the Racketeer Influenced and Corrupt Organizations Act, in the United States District Court, Southern District of Florida, seeking over $450 million in damages caused by the defendants to Genius Group (GNS). Due to the current legally imposed restrictions which are impacting the Company’s ability to fund and grow its operations, the Company took a series of actions in April, 2025 to lower the risk of being blocked further from conducting the normal operations of its business as per the wishes, consent and authorizations of its shareholders and Board: The Company returned the custody of its Bitcoin from the United States, where it has been held as collateral for the Company’s Bitcoin loans, to Singapore where the Company is registered and headquartered. The Company repaid all of its Bitcoin loans, making repayment in full of $20.9 million in order to release the Bitcoin from custody in the United States and transfer to Singapore. The Company is now debt free. The Company dramatically reduced its Bitcoin holdings from 440 Bitcoin to 66 Bitcoin, for the period during which it remains blocked from raising funds or buying Bitcoin, with the possibility the Company may need to sell all of its Bitcoin in order to convince the court to extinguish the PI. The cash in its treasury is also being held in Singapore. The ongoing damages caused by the alleged fraud and extortion on the Company are being added to the damages the Company is seeking to recover. The Company has also received an update on the lawsuit led by Christian Attar related to alleged naked short selling and spoofing of Genius Group’s shares, with alleged damages previously calculated at between $251 million and $263 million. Wes Christian of Christian Attar has reported to the Company that they anticipate calculations on updated damages will be completed and the complaint is anticipated to be filed in May 2025. These issues are ongoing, and are imposing continuing damages and risk to the Company’s operations. The Company’s legal team is dedicated towards achieving positive outcomes in its legal cases and will continue to take decisive actions against bad actors to protect the Company and shareholders’ interests.”