Hedge fund manager William Cameron Morton is accused of helping Indian education technology startup Byju's conceal $533 million from lenders in the US.
William Cameron Morton, a hedge fund manager who is accused of helping the Indian education technology startup Byju's conceal $533 million from its lenders, was ordered to be arrested by a U.S. bankruptcy judge on Thursday. After the Bangalore-based firm missed payments on $1.2 billion in debt, Byju's Alpha, a subsidiary under the management of Byju's lenders, filed for bankruptcy in the United States in February. According to Byju's court documents, the lenders learned during the repayment process that the borrower had transferred $533 million to Morton's "unknown and unproven hedge fund," Camshaft Capital.
Prior to this, Dorsey had mandated that Morton show up in court to give an account of where the money was kept. Morton claimed in court that he was unable to attend because he was receiving medical attention abroad, but Dorsey refuted that claim during a court hearing on Thursday in Wilimington, Delaware. A warrant for Morton's arrest was issued by Dorsey, who also threatened to punish him and Camshaft $10,000 every day unless they obeyed court instructions to assist in the investigation of Byju's missing funds.
Byju's lenders sued Morton and Camshaft, claiming they wired large amounts to unqualified individuals and that Camshaft had no notable businesses, citing the International House of Pancakes as its principal business site.
