A complex financial entanglement has brought to light a 'hidden' sum of $533 million connected to the edtech giant Byju's.

Byju's, presently facing significant financial challenges, declared on Sunday an inability to meet employee salary obligations due to blocked funding from investors. However, investigations into financial mismanagement and legal proceedings have uncovered a substantial amount of $533 million linked to Byju's stashed away in an offshore account, as revealed in a recent US court case.

Accusations have emerged against a Florida-based hedge fund for aiding Think and Learn Ltd, Byju's parent company, in concealing the $533 million from investors. This large sum was originally held by Byju's overseas entity Alpha Inc, a bankrupt shell company under Think and Learn's ownership.

The allegations surrounding the hidden $533 million have prompted accusations of corruption and mismanagement against Byju's CEO and founder, Byju Raveendran. Investors are intensifying calls for his removal from the company's leadership amidst ongoing legal battles.

During a court hearing, US Bankruptcy Judge John Dorsey ordered the accused Florida hedge fund, Camshaft Capital Fund, to disclose the location of the hidden funds or face potential sanctions from the court.

The mystery surrounding the missing $533 million revolves around the transfer of funds from Alpha Inc to Camshaft Capital Fund after Alpha Inc declared bankruptcy, despite owing $1.2 billion to lenders. The transaction, allegedly orchestrated by Byju's CEO's brother, Riju Raveendran, has triggered legal disputes and demands for repayment from multiple investors and lenders.

Camshaft Capital Fund has resisted disclosing details about the funds, citing client confidentiality obligations. The hedge fund argues that Byju's and the lenders should seek information from a Delaware company named Inspilearn, which received the funds from Camshaft before transferring them to an undisclosed trust.

Lenders are pressing for the $533 million, currently held in untraceable offshore accounts, to be used towards repaying the $1.2 billion debt. However, Camshaft has refused to divulge the true location of the funds.

The US court has warned that failure to disclose the account holding the funds could lead to sanctions against the Florida hedge fund, including a show cause notice.