Genius Group, a Singapore-based AI firm, has been temporarily banned from expanding its Bitcoin treasury due to a US court order that prohibits selling shares, raising funds, or using investor funds to buy more Bitcoin. This order was issued in relation to a merger dispute with Fatbrain AI. Genius Group had initiated arbitration procedures to terminate the merger, claiming fraud by Fatbrain AI executives. The court's injunction has compelled Genius Group to close divisions, suspend marketing efforts, and sell 10 Bitcoin worth over $23 million to fund its operations. The firm anticipates further sales might be necessary unless the injunction is lifted. Additionally, Genius Group claims compliance with the US order has led them to violate Singapore law by halting share compensation to employees. The company has previously announced intentions to hold a substantial portion of its reserves in Bitcoin but is currently constrained from pursuing this strategy. Its share price has drastically declined from an all-time high, reflecting ongoing financial challenges due to the injunction and prolonged legal disputes.

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