Genius Group, a prominent AI-driven education company listed on the Nasdaq, has recently made headlines with its bold plan to split potential winnings from two major lawsuits between its shareholders and Bitcoin treasury. The company has set its sights on recovering over $1 billion in damages from these combined cases, a move that could have significant implications for both its investors and its cryptocurrency holdings.
In a press release issued on Thursday, the Singapore-based Genius Group announced that its board of directors has approved a distribution plan for any net damages recovered from the lawsuits. Under this plan, 50% of the funds won in court would be paid out to shareholders as a special dividend, while the remaining 50% would be used to purchase Bitcoin. This decision was made with the intention of ensuring that any court victories directly benefit the company’s shareholders.
CEO Roger Hamilton explained that Genius Group currently has two ongoing legal cases, one filed and one pending, in which it is seeking combined damages exceeding $1 billion. The first lawsuit, filed in the U.S. District Court for the Southern District of Florida, seeks over $750 million in damages under the Racketeer Influenced and Corrupt Organizations (RICO) Act. This suit names four individuals, including former SEC Chairman John Clayton, and alleges misconduct that led to financial harm for Genius Group.
The second lawsuit, which is still pending, focuses on allegations of naked short selling and market manipulation. Preliminary analysis of the company’s 2023 trading data suggests damages ranging from $251 million to $262 million. Genius Group’s legal team, led by attorney Wes Christian, is currently updating the claim with more recent trading records and expects the damage estimate to increase significantly before filing.
Hamilton emphasized that both lawsuits are being pursued to recover damages caused by third parties directly to Genius Group’s shareholders. As a result, the board believes that 100% of any proceeds from a successful outcome should be directly distributed or reinvested for the benefit of shareholders.
While there is no definitive timeline for when either case may conclude, the company has outlined a clear post-trial roadmap. Once any net damages are collected, after accounting for legal fees, recovery costs, and taxes, the funds will be split between shareholders and the company’s Bitcoin holdings. This strategy could potentially lead to one of the largest corporate Bitcoin purchases linked directly to litigation proceeds.
Genius Group did not disclose the exact amount of Bitcoin it currently holds but has previously described itself as a “Bitcoin-first” organization. The company is listed on the NYSE American under the ticker GNS, and any payouts or purchases will adhere to regulations from the SEC, the NYSE, and Singaporean authorities.
In a separate development, Genius Group recently resumed its Bitcoin buying spree after a temporary legal freeze that forced the company to sell part of its Bitcoin treasury. Following a New York court injunction that prohibited the company from raising funds or buying Bitcoin, Genius was forced to offload some of its BTC holdings. However, a U.S. Court of Appeals ruling in May reversed the freeze, allowing Genius to re-enter the market.
On May 22, the company confirmed a new Bitcoin purchase of 24.5 BTC, increasing its treasury to 85.5 BTC at an average cost of $99,700 per coin. This marked a 40% increase in holdings since the legal freeze was lifted, positioning Genius Group back among corporate Bitcoin accumulators.
Genius Group had previously adopted a “Bitcoin-first” treasury strategy in November 2024, committing to allocate 90% of its reserves to Bitcoin. The company plans to use $120 million from its $150 million ATM funding facility to purchase Bitcoin, paving the way for further corporate crypto adoption.
In conclusion, Genius Group’s aggressive legal strategy and commitment to Bitcoin accumulation could have far-reaching implications for both its shareholders and its position in the cryptocurrency market. The company’s bold approach to litigation and cryptocurrency investment sets it apart as a pioneer in the intersection of law and finance.