A U.S. court has kept Genesis's assets under seizure
A U.S. court has extended the freeze on the assets of ten companies affiliated with the Genesis Group until the conclusion of the U.S. Federal Trade Commission (FTC) lawsuit. The restrictions will remain in effect at least until the next stages of the legal proceedings, and the case itself could last anywhere from several months to several years.
The U.S. District Court for the Northern District of California ruled that the assets of ten companies within the Genesis group will remain frozen until the conclusion of the legal proceedings in the U.S. Federal Trade Commission (FTC) lawsuit. These include Universe Group, Obrio, and AMO, as well as their affiliated entities.
The court issued the corresponding preliminary injunction on July 2. It extended the temporary restrictions that had been imposed on June 4. Thus, the court decided to maintain the existing restrictions while the case is being heard on its merits. The ruling also applies to Genesis co-founders Volodymyr Mnoholetnyi, Vasyl Ulyanov, and Stamatis Skiadis. According to Forbes, they were not present at the court hearing during which the extension of the restrictive measures was considered.
Meanwhile, as early as June 30, five legal entities associated with Universe Group, Obrio, and AMO, as well as several other defendants—including Oksana Kucher, Iryna Oleksyn, Olga Harbuzenko, Rostyslav Ivanitsa, and Viktoria Savchuk, voluntarily agreed to similar restrictions. This allowed the court to approve the relevant measures without further dispute regarding these parties to the proceedings.
What Are the FTC’s Claims?
The U.S. Federal Trade Commission filed a complaint in court on June 2, 2026. Two weeks later, on June 17, the agency officially announced the lawsuit in a press release. According to the FTC, Genesis has allegedly operated a “portfolio of deceptive subscription schemes” since 2020 through a network of companies registered in Cyprus and operating in Ukraine. It is these circumstances that are currently being examined in a U.S. court.
At the same time, it is important to note that at this stage, the discussion centers specifically on the lawsuit and the Federal Trade Commission’s position. The court has not yet issued a final ruling on the merits of the case, and all the facts continue to be examined during the trial.
Assets Have Already Been Frozen
After the investigation began, financial institutions began complying with the court’s requirements to secure the claim. According to the case file, as of June 8, PayPal notified the FTC that it had frozen approximately $8 million in accounts linked to the defendants.
The following day, June 9, JP Morgan Chase also froze assets related to the case. Their total value was approximately $2 million. Freezing assets does not mean confiscation of property. It is a temporary measure that allows funds to be preserved until the conclusion of the court proceedings and the issuance of a final ruling.
What’s Next
The trial is just getting underway. By August 25, the parties must submit their written plans for the further proceedings to the court. These documents will outline the schedule for gathering evidence, the number of potential witnesses, and the estimated duration of the trial.
The first procedural conference with the judge is scheduled for September 1. During this conference, the case schedule is to be finalized, and key deadlines for the coming months will be set.
How the case might end
Lawyers note that in the U.S., similar cases often end in a settlement between the company and the government regulator. Large international companies, including Adobe, Amazon, and Shutterstock, have already used this approach. However, it is not yet possible to guarantee that this will be the outcome in the Genesis case. According to experts, everything will depend on the positions of the parties, the results of the investigation, and their willingness to negotiate.
“A court ruling could come within months or even years, as it depends on many factors, including the willingness to reach a settlement with the FTC,” explained Oksana Zadniprovska, a partner at Axon Partners. At this point, the court has not addressed the question of the guilt of the companies or individuals. The current rulings concern only injunctive relief, which will remain in effect until the case is resolved on its merits. This is reported by Forbes.
In early June 2026, the U.S. Federal Trade Commission (FTC) filed a lawsuit against the Ukrainian IT company Genesis and a number of its affiliated companies. The U.S. regulator alleges that since 2020, a network of companies registered in Cyprus and operating in Ukraine has allegedly used deceptive schemes to set up online subscriptions with hidden fees. Genesis has previously denied these allegations.
The FTC is an independent U.S. government agency responsible for protecting consumer rights, combating unfair competition, and ensuring compliance with business regulations. The Commission has the authority to conduct investigations, file lawsuits, demand that violations cease, and seek damages and financial penalties if violations are proven. The case is currently pending in court, and a final decision on the merits of the lawsuit has not yet been issued.
