Genius Group’s $1 billion legal actions may lead to acquisition of 5,000 BTC.

Genius Group, an education firm driven by AI and listed on Nasdaq, has sanctioned a strategy to divide potential recoveries from two significant lawsuits between its shareholders and Bitcoin treasury. The organization indicates it could reclaim over $1 billion in damages from the two cases combined.

In a press release issued on Thursday, the Singapore-based entity revealed that its board of directors has ratified a distribution strategy for any net damages it secures. As per the announcement, 50% of any court-awarded funds would be distributed to shareholders as a special dividend, while the other 50% would be allocated for Bitcoin purchases.

CEO Roger Hamilton stated that the choice was made to guarantee that any legal victories directly benefit shareholders. “The Company has two legal actions, one already filed and one pending, in which we are pursuing combined damages exceeding $1 billion,” he remarked.

Genius Group Aims for $1B in Damages—50% for Shareholders, 50% for Bitcoin

The initial lawsuit, already lodged in the U.S. District Court for the Southern District of Florida, seeks damages exceeding $750 million under the Racketeer Influenced and Corrupt Organizations (RICO) Act.

The lawsuit identifies four individuals, including former SEC Chairman John Clayton, and claims misconduct that resulted in financial damage to Genius Group.

A second lawsuit is still in progress and focuses on accusations of naked short selling and market manipulation. The firm asserts that preliminary analysis of its 2023 trading data indicates damages ranging from $251 million to $262 million.

Its legal team, led by attorney Wes Christian, is currently revising the claim with more recent trading data and anticipates a significant increase in the damage estimate prior to filing.

“As both lawsuits are being pursued by the Company to recover damages inflicted by third parties directly on our shareholders, the Board believes that 100% of any proceeds from the successful resolution of these cases should be directly distributed or reinvested for the benefit of shareholders,” Roger stated.

50% of legal victories go to $GNS shareholders as special dividend, 50% to $BTC Bitcoin Treasury. No guarantee on the recovery amount, but in an ideal scenario where justice prevails, $1B damages = $7/share dividend + 5,000 $BTC.
In a Saylor double alternate universe where… pic.twitter.com/x3sNg4UaoK

— Roger James Hamilton (@rogerhamilton) June 26, 2025

Genius Group mentioned that the forthcoming short selling lawsuit is currently undergoing final review and will incorporate updated damage estimates based on ongoing monitoring of share trading activity.

There is no established timeline for the conclusion of either case, and the company warned that there is no assurance regarding the final outcome or the amount of damages it may recover. Nevertheless, Genius Group has outlined a clear post-trial plan.

Once any net damages are collected, after accounting for legal fees, recovery expenses, and taxes, the funds will be divided. Shareholders would receive a dividend, while the company would utilize the other half to enhance its Bitcoin holdings.

If successful, this approach could pave the way for one of the largest corporate Bitcoin acquisitions directly linked to litigation proceeds.

The company did not reveal the current amount of Bitcoin it holds but has previously characterized itself as a “Bitcoin-first” organization.

Genius Group is traded on the NYSE American under the ticker GNS. Any distributions or acquisitions will adhere to regulations from the SEC, the NYSE, and Singaporean authorities.

Court Drama Eases as Genius Group Resumes Bitcoin Buying Spree Post Legal Freeze

After a challenging legal standoff that prevented Genius Group from raising capital and compelled it to liquidate part of its Bitcoin treasury, the education and AI-centric firm is now taking proactive steps.

On April 3, a New York court temporarily barred Genius Group from selling shares or utilizing investor funds to acquire Bitcoin, citing ongoing lawsuits related to its terminated agreement with Fatbrain AI (LZGI).

A New York court restricts Genius Group from raising funds or buying Bitcoin, forcing the company to sell part of its Bitcoin treasury amid legal battles and financial strain.#Crypto #Regulationhttps://t.co/Evr2bOXIQ7

— Cryptonews.com (@cryptonews) April 3, 2025

Allegations of fraud involving executives Michael Moe and Peter Ritz escalated into a comprehensive legal freeze. The court injunction, supported by an SEC complaint, also halted the company’s $150 million at-the-market share offering.

In order to remain operational, Genius reduced its BTC holdings from 440 BTC to 430 BTC as pressures mounted.

However, a ruling from a U.S. Court of Appeals in May lifted the freeze, allowing Genius to re-enter the market.

On May 22, the company announced a new Bitcoin acquisition of 24.5 BTC, increasing its treasury to 85.5 BTC at an average cost of $99,700 per coin, totaling $8.5 million invested.

@GeniusGroupAI has resumed Bitcoin accumulation after a U.S. court lifted its treasury ban, boosting holdings by 40% to 85.5 BTC and reaffirming its 1,000 BTC target. #Bitcoin #GeniusGrouphttps://t.co/fOrMLXv12D

— Cryptonews.com (@cryptonews) May 23, 2025

This represents a 40% increase since the freeze was lifted, positioning Genius Group back among corporate Bitcoin accumulators.

In November 2024, Genius Group (GNS) adopted a “Bitcoin-first” treasury strategy, designating BTC as its primary reserve asset.

The company committed to allocating 90% of its current and future reserves to Bitcoin, citing strong long-term confidence in the asset.

@GeniusGroupLtd_ is going “Bitcoin-first,” committing 90% of its reserves to Bitcoin! With a $120 million investment plan, they’re paving the way for corporate crypto adoption. #Bitcoin #CryptoAdoptionhttps://t.co/S7HLQ1RkeX

— Cryptonews.com (@cryptonews) November 12, 2024

Initially, Genius intends to utilize $120 million from its $150 million ATM funding facility to acquire Bitcoin.

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