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Genius Group Plans 5,000 Bitcoin Buy if $1B Lawsuits Succeed

Highlights:

  • Genius Group pursues over $1 billion in damages through two lawsuits filed.
  • Half of the recovered funds will be paid as dividends, and half will go to the Bitcoin treasury.
  • No certainty on lawsuit outcomes, but a clear plan is set for the recovered fund distribution.

On Thursday, Genius Group announced it is pursuing more than $1 billion in damages through two lawsuits. CEO Roger Hamilton said if successful, half of the recovered funds will be paid to shareholders as a special dividend, while the other half will be invested in growing the company’s Bitcoin holdings. 

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The company stated that winning both lawsuits could lead to a $7 per share dividend for shareholders and the purchase of 5,000 Bitcoins at current market prices of about $107,000 per Bitcoin. This Bitcoin acquisition, valued at more than $535 million today, would be among the largest recent BTC investments made by a publicly traded company.

Details of the Lawsuits and Expected Claims

Genius Group has filed its first lawsuit under the Racketeer Influenced and Corrupt Organizations Act (RICO), naming several individuals, including former SEC Chairman John Clayton. The company is seeking damages exceeding $750 million.

The second lawsuit is still pending. It targets unfair trading like naked short selling and spoofing. Using data from 2023, Genius Group expects to ask for at least $262 million. This amount will likely grow as new trading data from 2024 and 2025 comes in. He stressed that these lawsuits aim to recover losses that shareholders have directly suffered. 

Genius CEO said:

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

Genius Group’s Bitcoin Treasury Growth and Future Outlook

Recently, Genius Group has expanded its Bitcoin treasury by 52% after a U.S. court lifted a previous ban on crypto purchases. The company reaffirmed its long-term goal of accumulating 1,000 BTC. According to CEO Roger Hamilton’s announcement on X, the company acquired 34 additional BTC in the past month, bringing its total corporate treasury to 100 BTC. These purchases were made at an average price of $100,600 per BTC, amounting to a total investment of approximately $10.06 million. 

The company stated that while there is no certainty regarding the final outcome, timing, or amount of damages recovered from either case, if successful, the Board has approved a specific plan for distributing any recovered funds. This distribution will apply separately to each instance of damage recovery. Net damages mean the amount the company receives after deducting legal fees, recovery costs, and taxes. All distributions will follow the rules set by relevant regulatory authorities, including the SEC, NYSE, and Singapore law.

Roger Hamilton expressed hope that the company wins the cases while Bitcoin’s value increases. “Wouldn’t that be the ultimate irony,” Hamilton added, “where victims end up making 100x what the crooks stole from them because we fought back.”

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