Singapore-based AI company Genius Group is currently restricted from expanding its Bitcoin holdings due to a U.S. court order that prevents it from selling shares, raising capital, or using investor funds to acquire additional Bitcoin. 

The New York District Court issued a preliminary injunction (PI) and temporary restraining order (TRO) on March 13, related to a broader conflict involving its merger with Fatbrain AI, according to an April 3 statement from Genius Group. 

Genius Group and Fatbrain AI completed their merger and purchase agreement in March 2024. However, by October 30, Genius Group initiated arbitration proceedings to terminate the deal, accusing Fatbrain AI executives of fraud related to the agreement.

This legal entanglement has resulted in Genius Group being compelled to liquidate portions of its existing Bitcoin holdings to maintain operational funding.

Furthermore, the company asserts that the court's injunction has placed it in a position where it is forced to violate Singaporean law concerning employee share compensation. Genius Group is actively pursuing an appeal against the court's decision, while also taking measures to downsize its operations in response to the financial constraints.

The company has expressed significant concern over the U.S. court's intervention, highlighting the unexpected limitations placed on its standard business operations.