- Genius Group filed a federal class action accusing Citadel and Virtu of years-long spoofing and naked short selling that allegedly depressed GNS share prices.
- Genius seeks at least $250 million, aims to lead the case, and says the lawsuit could expose high-frequency trading abuses and push market reforms.
In a bold move that’s turning heads among retail investors and market watchers alike, Singapore-based Genius Group Limited (NYSE American: GNS) has launched a federal class action lawsuit against two major Wall Street players, Citadel Securities LLC and Virtu Americas LLC.
The suit, filed on November 14, 2025, in the U.S. District Court for the Southern District of New York, accuses the defendants of a years-long campaign of market manipulation through tactics like spoofing and naked short selling.
This isn’t just a corporate spat—it’s a class action aimed at recovering damages for the company and all investors who sold GNS shares at what the complaint calls artificially deflated prices during the period from April 12, 2022, to May 30, 2025.
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The complaint pulls no punches, alleging violations of Sections 10(b), 9(a)(2), 9(e), and 20(a) of the Securities Exchange Act of 1934.
Details of the Lawsuit Against Citadel and Virtu
At the heart of it is “spoofing”—a practice where traders place fake buy or sell orders they never intend to execute, just to trick the market into thinking there’s more supply or volatility than there really is.
According to the filing, Citadel and Virtu did this repeatedly, entering thousands of such orders on 98% of trading days during the class period, often canceling them within milliseconds.
This allegedly built up massive short positions off-exchange, followed by barrages of spoofing trades that tanked the stock price, allowing the defendants to profit from short sales.
Naked short selling—selling shares without actually borrowing them first—also features prominently, with spikes in such activity tied to major price drops in GNS.
Genius Group, which describes itself as a leading AI-powered, Bitcoin-first education group serving 6 million users in over 100 countries, is seeking at least $250 million in damages.
The company wants to be appointed lead plaintiff to steer the litigation and protect shareholder interests.
This lawsuit could set precedents for how companies fight back against market abuses, especially in an era where retail investors are more vocal about fairness.
CEO’s Fiery Stance: A Call for Fair Markets
Roger James Hamilton, CEO of Genius Group, didn’t mince words in the press release announcing the suit. “We have been consistent in calling for fair markets and taking actions to protect our shareholders,” he said.
“The filing of this lawsuit is an important milestone for the company in what has been a long, multi-year fight to protect the company and its shareholders and expose unfair and illegal practices that our investors have dealt with.”
He went further, pointing fingers at brokers who have restricted buying of GNS shares while allowing easy selling—a tactic reminiscent of the 2021 GameStop frenzy.
“Even today, multiple brokers have taken away the buy button on Genius shares while leaving the sell button, making it hard to buy but easy to sell our stock without providing adequate explanation as to why they are choosing to target our company,” Hamilton added.
“We give notice to any and all bad actors seeking to profit at the expense of our shareholders that we will continue to take forceful, proactive action to defend our company.”
Hamilton’s comments tie into Genius Group’s broader strategy, including a Bitcoin Loyalty Payment program for shareholders who direct-register their shares by November 28, 2025, to limit shares available for shorting.
Retail Investors Rally on X: Echoes of GameStop and AMC
The news hit X (formerly Twitter) like a storm, with retail investors buzzing about the implications.
Many see this as a win for the little guy, drawing parallels to meme stock battles like GameStop ($GME) and AMC Entertainment ($AMC).
One user highlighted the suit’s potential as a “key precedent,” tagging CEOs like Ryan Cohen of GameStop and Elon Musk of Tesla, urging them to join the fight against manipulation.
The post sparked discussions about brokers like Robinhood and Fidelity restricting buys.
Others expressed outright excitement and support. @Python0o warning shorts to “watch your backs” and using hashtags like #NakedShorts and #FAFO (F*** Around and Find Out).
@WindsorDrew dove deep, calling the complaint “devastating” with “1.4 million lines of data-backed market reconstruction,” and noted how it mirrors what GameStop holders have alleged since 2021.
Even skeptics, like @zohmbastic, acknowledged the cash flow angle but framed the lawsuit as a creative way to combat manipulation.
A common thread? Frustration with Wall Street’s opacity. @GeoffAMC_ tied it to Genius Group’s valuation drop from $7 billion to under $80 million, blaming spoofing and naked shorts.
@JunkSavvy amplified the press release, tagging other high-profile tickers like $MMAT and $MMTLP.
Overall, retail chatter on X reflects hope that this could expose broader systemic issues, with calls for transparency and fair trading echoing loudly.
Citadel’s Checkered History: A Pattern of Fines and Scrutiny
Citadel Securities, run by billionaire Ken Griffin, isn’t new to controversy.
Over the years, it’s racked up millions in fines from regulators. In 2017, the firm paid $22.6 million to the SEC to settle charges of misleading customers on trade pricing from 2007 to 2016, including $5.2 million in disgorgement and penalties.
Fast forward to 2023, and Citadel was hit with a $7 million fine for mismarking short and long sales, violating order marking requirements.
That same year, another $7 million penalty came for Regulation SHO violations related to short selling rules.
The list goes on: In 2020, a $700,000 fine for rule violations spanning years.
In 2024, FINRA slapped Citadel with $1 million for failing to timely report data on billions of equity and option trades under CAT rules.
Even internationally, Citadel faced a $97 million settlement in China in 2020 for stock manipulation, though some speculated political motives.
These incidents paint a picture of repeated regulatory run-ins, often tied to trading practices that skirt the edges of the rules.
Virtu’s Own Regulatory Baggage: From Europe to the SEC
Virtu Financial hasn’t escaped scrutiny either. In 2015, France’s AMF fined its European arm €5 million (about $5.6 million at the time) for market manipulation and ignoring professional conduct rules.
More recently, in 2023, the SEC charged Virtu with false disclosures about protecting customer data, leading to a broker-dealer unit failing to enforce proper safeguards.
Virtu fought a proposed $25 million fine over data breaches, calling it “unusual” and questioning the SEC’s fairness.
By 2025, analysts projected potential penalties up to $200 million in an ongoing SEC case, amid a class action where key fraud allegations survived dismissal.
Settlement talks failed in 2023, paving the way for litigation over information barriers.
Violation Tracker, a database of corporate misconduct, logs multiple entries for Virtu, including fines for regulatory lapses.
In 2021, FINRA fined a Virtu exec $5,000 alongside a $5,000 firm penalty in a consent agreement.
What This Means for the Market—and You
As Genius Group pushes forward, promising updates to shareholders, this case could shine a light on high-frequency trading’s dark corners.
For retail investors tired of feeling like the deck is stacked, it’s a reminder that companies are starting to fight back.
Whether it leads to broader reforms remains to be seen, but the buzz on X and the defendants’ histories suggest this story is far from over.
Stay tuned—market fairness might just be getting a genius upgrade.
Also Read: Short Sellers Are Now Throwing One Another Under the Bus
