Byju’s transferred funds in violation of bankruptcy rules via shell company: Report

Byju’s, the embattled tech company controlled by Indian entrepreneur Byju Raveendran, has been accused of illegally transferring funds from its U.S. affiliate, according to a lawsuit filed on Tuesday in a Delaware federal court, Bloomberg reported.

The lawsuit claims money that should have been used to pay creditors was funnelled to Whitehat Education Technology. Court-appointed trustee Claudia Springer, a bankruptcy attorney, is seeking the return of nearly $700,000 allegedly transferred from accounts under her control, per the Bloomberg report.