Hedge Fund Manager Arrested in Byju’s $533 Million Fraud Case

In a shocking turn of events, a U.S. bankruptcy judge ordered the arrest of hedge fund manager William Cameron Morton, accused of aiding Indian educational technology giant Byju’s in concealing $533 million from its creditors. The arrest order came after Byju’s Alpha, a subsidiary under the control of Byju’s lenders, declared bankruptcy in the United States following the Bangalore-based company’s default on $1.2 billion in debt. Investigations revealed that Byju’s had transferred a significant sum to Morton’s obscure hedge fund, Camshaft Capital, raising serious concerns about financial misconduct.

Judge Dorsey, overseeing the case in Wilmington, Delaware, dismissed Morton’s excuse of being hospitalized abroad as unconvincing, given his failure to provide any evidence of his hospitalization or his whereabouts. The lack of cooperation and apparent contempt for court procedures led to the issuance of an arrest warrant for Morton and a daily fine of $10,000 against him and Camshaft Capital until they comply with the investigation into the whereabouts of the missing funds.

The case has cast a shadow over Byju’s, once a celebrated unicorn startup valued at $22 billion. Questions have been raised about the rationale behind the substantial financial transfer to Morton, a relatively inexperienced hedge fund manager in his mid-twenties, whose primary business address was listed at an International House of Pancakes. The ongoing legal battle underscores the severe implications of financial mismanagement and fraudulent activities within the tech industry.

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