May 8, 2025 – Genius Group Limited, a global leader in entrepreneurial education, has achieved a significant legal milestone in its ongoing battle against LZGI International, Inc. (“LZGI”).
On May 7, 2025, the United States Court of Appeals for the Second Circuit ruled in favor of Genius Group, granting a partial stay of a Preliminary Injunction (PI) issued by the New York Southern District Court (SDNY) on March 13, 2025.
This ruling marks a turning point for the company, which has faced substantial challenges over the past three months due to a Temporary Restraining Order (TRO) and the PI, allowing Genius Group to resume normal operations and focus on rebuilding its business and Bitcoin Treasury.
A Legal Battle with High Stakes
The legal saga began when Genius Group found itself constrained by the TRO and PI, which were issued in the case Genius Group vs. LZGI (Case No. 1:24-cv-08464).
According to the company’s filings, these court orders disrupted its ability to raise funds, sell shares, buy Bitcoin, and fund its operations and growth plans.
Genius Group has consistently argued that the TRO and PI were based on false statements intended to defraud the court and extort money from the company, failing to maintain the status quo pending arbitration.
On May 6, 2025, Genius Group’s legal team attended a hearing at the Second Circuit Court of Appeals, seeking a partial stay and partial vacatur of the PI.
The court’s ruling the following day was a decisive win for the company.
Citing Uniformed Fire Officers Ass’n v. de Blasio (973 F.3d 41, 48 (2d Cir. 2020)), the court stated, “Appellant has made a strong showing that it is likely to succeed on the merits and suffers clear irreparable injury absent a stay, warranting a stay pending appeal.”
As a result, the March 13 injunction against Genius Group was stayed pending the resolution of the appeal, although the PI remains in effect for the appellees, LZGI.
However, the court denied Genius Group’s motion for partial vacatur of the PI, which was construed as a request for summary reversal.
The Clerk’s Office was directed to establish an expedited schedule for briefing and argument, signaling that the appeal process will move forward swiftly.
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Immediate Impact: Resumption of Operations
The Court of Appeals’ ruling has immediate and far-reaching implications for Genius Group.
With the partial stay in place, the company can now resume its normal operations, including raising funds, selling shares, purchasing Bitcoin, and funding its growth initiatives.
The news comes as Bitcoin and altcoins rallied on Thursday with Bitcoin surpassing $101K.
This development comes at a critical juncture for Genius Group, which has incurred damages estimated at $250 million due to the TRO and PI over the past three months.
The company is now focused on restructuring and rebuilding its education business, which was significantly impacted by these legal constraints.
Escalating the Fight: RICO Lawsuit and Treble Damages
Genius Group’s legal strategy extends beyond the appeal.
On March 31, 2024, the company filed a separate lawsuit against Peter Ritz and Michael Moe, the controlling officers and directors of LZGI, under the Racketeer Influenced and Corrupt Organizations Act (RICO).
Filed in the United States District Court, Southern District of Florida, the lawsuit initially sought over $450 million in damages for alleged fraud and extortion by the defendants.
Following the recent Court of Appeals ruling, Genius Group has instructed its legal team to update the RICO claim, now seeking treble damages amounting to $750 million.
This escalation underscores the company’s determination to hold LZGI accountable for the financial and operational harm inflicted over the past year.
Genius Group alleges that LZGI’s actions were not only fraudulent but also part of a broader scheme to manipulate and extort the company, a claim that aligns with the broader advocacy of its CEO, Roger Hamilton.
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Roger Hamilton: A Pioneer in Combating Market Manipulation
Roger Hamilton, the CEO of Genius Group, has emerged as a prominent advocate for fairer markets, particularly for retail investors.
Hamilton was among the first CEOs to publicly stand up to market manipulation in recent years, a stance that has defined his leadership and the company’s approach to corporate governance.
His vocal criticism of predatory practices in the financial markets has resonated with a growing number of retail investors who feel marginalized by systemic inequities.
Under Hamilton’s leadership, Genius Group has not only pursued legal recourse but also positioned itself as a champion of transparency and accountability.
The company’s recent legal victories are a testament to Hamilton’s commitment to protecting shareholders and ensuring that Genius Group can continue its mission of providing accessible, high-quality entrepreneurial education globally.
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Rebuilding the Bitcoin Treasury and Education Business
In addition to its legal efforts, Genius Group is now prioritizing the recovery of its business operations.
The company has been a pioneer in integrating cryptocurrency into its financial strategy, notably through its Bitcoin Treasury.
Since GNS’s Bitcoin Treasury integration, we have seen other impactful entrepreneurs such as Grant Cardone also integrate this business model into his real estate company, Cardone Capital.
The TRO and PI had severely hampered these efforts, but with the partial stay now in effect, Genius Group can resume building its Bitcoin holdings as part of its long-term growth strategy.
Simultaneously, the company is committed to revitalizing its core education business, which has faced setbacks due to the legal disruptions.
Genius Group’s innovative approach to education, which emphasizes entrepreneurial skills and global accessibility, has been a cornerstone of its mission.
The company aims to leverage this renewed operational freedom to accelerate its growth plans and deliver value to its stakeholders.
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GNS shareholders, how do you feel about this victory?