Genius Group Ties Billion-Dollar Lawsuit Winnings to Shareholder Payouts, Bitcoin Treasury

Artificial intelligence-focused edtech firm Genius Group has announced a plan to distribute potential legal winnings of over $1 billion to shareholders, while also expanding its Bitcoin treasury, according to Arijit Sarkar in Cointelegraph.

Genius Group Limited v. Peter B. Ritz, et al., filed in Florida under the RICO statutes, along with a pending suit that alleges naked short selling and evidence of spoofing, is a strategic move that intertwines shareholder value creation with a growing investment in digital assets, according to a recent press release.

Genius Group’s board has approved a proposal to allocate any proceeds from two lawsuits between a special dividend and a cryptocurrency acquisition.

The Florida suit seeks more than $750 million in damages. The second lawsuit is expected to add significantly to the total claimed damages.

Genius Group CEO Roger Hamilton noted that the claims are aimed at recovering shareholder losses and estimates at least $262 million in recoverable damages based on 2023 data, with updated figures likely to increase that amount to account for damages in 2024 and 2025.

Hamilton emphasized that all proceeds will be used solely for the benefit of shareholders.

According to the plan, 50% of any legal winnings will be distributed directly to shareholders as a special dividend, and the other half will be allocated to acquiring cryptocurrency for the company’s Bitcoin treasury.

If both lawsuits are successful, shareholders could receive $7 per share, while Genius Group would purchase approximately 5,000 BTC based on current prices.

The company increased its Bitcoin holdings by 50% in June and aims to accumulate 1,000 BTC. However, it cautions that legal outcomes are uncertain and no payouts are guaranteed.

Lawyers will need to study the potential gains and pitfalls of the strategic use of litigation proceeds in corporate planning, particularly how Genius Group links legal recovery to shareholder returns. The strategy also highlights emerging regulatory and fiduciary considerations in integrating crypto into corporate balance sheets.