Genius Group Plans Bitcoin Purchases From Billion Dollar Lawsuit Winnings

Artificial intelligence education company Genius Group announced plans to distribute potential winnings from billion-dollar lawsuits to shareholders and expand its Bitcoin treasury. According to Cointelegraph, the board of directors approved a distribution plan for proceeds from two lawsuits seeking combined damages exceeding $1 billion.

The company filed one lawsuit under the Racketeer Influenced and Corrupt Organizations Act (RICO) seeking damages over $750 million against LZGI International. CEO Roger Hamilton expects to claim at least $262 million based on 2023 data. Updated figures may increase this amount to account for 2024 and 2025 damages.

Lawsuit Details and Distribution Plan

Hamilton stated that 50% of any lawsuit winnings will be distributed among shareholders as special dividends. The remaining 50% will fund Bitcoin treasury expansion. If Genius Group wins both legal battles, shareholders would receive $7 per share. The company would purchase 5,000 Bitcoin at current market prices of approximately $107,000 per coin.

The RICO lawsuit targets alleged fraudulent activities that led to legal restrictions preventing Genius Group from raising funds and purchasing Bitcoin. Stock Titan reports the $750 million represents treble damages based on $250 million in actual damages during the restriction period. A US Court of Appeals granted a stay on the preliminary injunction in May 2025, allowing the company to resume normal operations.

Recent Supreme Court developments affect RICO claims. Foley & Lardner notes the court broadened plaintiffs' ability to sue under RICO for economic loss stemming from personal injury. This 5-4 ruling permits recovery for business and property losses that derive from personal injuries.

Bitcoin Treasury Strategy Context

Genius Group has pursued an aggressive Bitcoin accumulation strategy since November 2024. Globe Newswire reported the company adopted a "Bitcoin-first" strategy committing 90% or more of current and future reserves to Bitcoin holdings. The board approved utilizing a $150 million funding facility to acquire an initial target of $120 million in Bitcoin.

The company faced legal challenges affecting its Bitcoin strategy. After accumulating 440 Bitcoin by February 2025, court restrictions forced asset sales. Following the May 2025 court victory, Globe Newswire shows Genius Group increased its treasury by 52% to 100 Bitcoin, purchasing 34 Bitcoin over one month.

The company maintains its target of building a 1,000 Bitcoin treasury. Currently holding 100 Bitcoin at an average price of $100,600 per coin, Genius Group positions itself among early Bitcoin treasury adopters on the NYSE American exchange.

Broader Market Implications

Corporate Bitcoin adoption accelerated significantly in 2025. Crypto.com research indicates over 90 public companies globally now hold Bitcoin on their balance sheets. The United States leads both corporate and government adoption of cryptocurrency treasury strategies.

Standard Chartered reports 61 publicly-listed companies not primarily engaged in digital assets have adopted Bitcoin treasury strategies. These firms allocate portions of cash and reserves toward Bitcoin, seeking to replicate Strategy's success. Formerly known as MicroStrategy, Strategy holds more than $63 billion worth of Bitcoin.

The trend reflects changing corporate attitudes toward digital assets. PYMNTS analysis shows regulatory clarity and improved accounting rules give CFOs more confidence in Bitcoin adoption. The Trump administration's progress toward cryptocurrency regulation frameworks reduces compliance concerns.

Companies view Bitcoin treasury strategies as inflation hedges and value preservation tools. Bitcoin's fixed supply of 21 million coins positions it as a deflationary alternative to fiat currencies. CTMfile notes 2025 represents a transformative year for institutional cryptocurrency acceptance.

However, challenges remain for widespread adoption. Volatility, regulatory uncertainties, and secure custody requirements present ongoing obstacles. Courts continue scrutinizing RICO claims in business disputes, with some viewing them as "potent weapons" that can force settlements through treble damage provisions.

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