Genius Group Takes Legal Action Against Market Manipulation: Class Action Lawsuit Targets Major Trading Firms Over Alleged Spoofing Schemes

SINGAPORE, Nov. 14, 2025 (GLOBE NEWSWIRE) – Genius Group Limited (NYSE American: GNS), an AI-powered education platform focused on Bitcoin literacy, has filed a Federal Securities Class Action Complaint in the United States District Court for the Southern District of New York against Citadel Securities LLC and Virtu Americas LLC. The lawsuit alleges these trading firms orchestrated a systematic scheme involving illegal market manipulation practices—specifically spoofing and naked short selling—designed to artificially suppress the stock price of GNS shares over an extended period.

Understanding the Core Allegations: What Is Spoofing?

The complaint centers on a trading tactic known as “spoofing,” a manipulative practice that violates Section 10(b) of the Securities Exchange Act of 1934. In spoofing schemes, traders submit large buy or sell orders with no intention of executing them. These “baiting orders” are designed to create false signals in the market about supply and demand levels, artificially triggering price movements and misleading other investors.

According to the lawsuit, the Defendants repeatedly engaged in this practice over a three-year period spanning from April 12, 2022 through May 30, 2025. During this Class Period, the trading firms allegedly submitted thousands of spoofing trades to create the illusion of both excess supply and heightened volatility in Genius Group stock, ultimately depressing its market value.

The Pattern of Alleged Violations

The complaint presents a troubling pattern of misconduct:

Frequency and Scale of Manipulation: On 98% of all trading days during the Class Period, the Defendants allegedly entered spoofing trades targeting Genius Group stock. Some trading days witnessed dozens—sometimes thousands—of manipulative orders, many canceled within milliseconds of placement.

Coordinated Trading Strategy: The trading firms allegedly built substantial short positions through off-exchange trading, then flooded the market with spoofing orders (baiting orders canceled within 100 milliseconds) to trigger sharp price declines. Within minutes of placing these deceptive orders, the Defendants executed significant volumes of Genius stock short sales through off-exchange channels.

Naked Short Selling: Beyond spoofing, the lawsuit alleges the Defendants engaged in substantial naked short-selling—improper short sales lacking adequate market inventory to support them. Major price declines in Genius Group stock were frequently accompanied by spikes in naked short-selling activity.

Damages and Impact on Shareholders

Genius Group is pursuing the class action on behalf of all investors who sold GNS shares at artificially depressed prices caused by the alleged market manipulation. The lawsuit seeks a minimum of $250 million in damages to compensate affected shareholders for losses resulting from the defendants’ illegal trading practices.

By pursuing a class action framework, the company aims to facilitate recovery not only for Genius Group itself but for all harmed shareholders collectively. The Company is requesting that the Court appoint it as “lead plaintiff” to manage the litigation effectively and safeguard investor interests throughout the legal process.

Company Statement and Commitment to Shareholder Protection

Roger James Hamilton, CEO of Genius Group, expressed the company’s determination to combat market abuse: “We have consistently advocated for fair and transparent markets, taking decisive action to protect our shareholders. Filing this lawsuit represents a critical milestone in our multi-year effort to shield the company and its investors from unfair and illegal trading practices.”

Hamilton further noted ongoing concerns about broker conduct: “Notably, multiple brokers continue to restrict the ability to purchase Genius shares while leaving sell functionality unrestricted—making it difficult to buy yet easy to sell our stock. We put the market on notice: any bad actor seeking to profit at our shareholders’ expense will face vigorous, proactive defense.”

Protecting Shareholder Interests Through DRS Registration

In a related protective measure, Genius Group has reminded shareholders of an important deadline: November 28, 2025, marks the record date for transferring shares via the Direct Registration System (DRS) to book entry with the company’s transfer agent, VStock. Shareholders participating in this process become eligible for the Bitcoin Loyalty Payment program, which aims to reduce the number of GNS shares available for short selling.

About Genius Group

Genius Group (NYSE: GNS) operates as a Bitcoin-first education and acceleration platform delivering AI-powered solutions for workforce development. The company serves approximately 6 million users across more than 100 countries through its Genius City model and digital marketplace. Its offerings include AI training modules, AI tools, and talent matching services, providing personalized entrepreneurial pathways that integrate human expertise with AI capabilities at individual, enterprise, and government levels. For additional information, visit geniusgroup.ai.

The company and its legal team will continue updating shareholders regarding case developments as warranted. This litigation signals Genius Group’s unwavering commitment to defending shareholder value and exposing market manipulation schemes that undermine fair trading principles.