Byju's is accused of concealing $533 million in a vague hedge fund that has been around for three years and once claimed to have its main office at a Miami IHOP pancake restaurant.

According to a complaint filed by several of Byju's lenders, the company last year transferred more than $500 million to Camshaft Capital Fund, an investment company that William C. Morton created it when he was only 23 years old.

The lenders claim that Morton's fund obtained the funds despite having no apparent formal investment training. In addition, according to court documents, Morton has registered premium vehicles including a 2023 Ferrari Roma, a 2020 Lamborghini Huracán EVO, and a 2014 Rolls-Royce Wraith since the transfer took place.

The claims are the most recent development in a public dispute between lenders and Byju's, an Indian education technology company, who assert that the $533 million is security for a $1.2 billion loan.

Regarding the debt, the two parties have been swapping accusations, with the lenders alleging that it is in default and Byju's accusing the lenders of utilizing predatory practices.

The founder of Byju's, Byju Raveendran, has alleged in court that the lenders want to seize control of the entire ed-tech empire. Byju's has petitioned a Delaware judge to overturn Glas' declaration of default.

One of the largest unrated term loan B offers by a new company ever, the facility was the subject of negotiations between the company and creditors to be restructured.

The Chan Zuckerberg Initiative, Silver Lake Management, and Naspers Ltd., three of the largest investors in the technology sector, have all contributed money to Raveendran's company since it was launched in 2015. When Byju's was thinking about combining with a special-purpose acquisition company last year, it was valued at more than $20 billion.

To track down the funds and recoup any excessive management fees paid to Camshaft, the lenders filed the case.