A US Bankruptcy Court has blocked Byju’s from transferring or using $533 million held in a non-US subsidiary, maintaining the status quo amid a legal battle with $1.2 billion Term Loan B lenders. The court found Byju Raveendran and Divya Gokulnath in concert with defendants, ordering compliance. Lenders allege potential fraud, claiming rightful contractual ownership of the funds, while Byju’s asserts they’re securely held in a subsidiary per court order. The court also ordered the arrest of William Morton, implicated in the fund transfer. Byju’s denies wrongdoing, attributing actions to known circumstances. The case underscores tensions between Byju’s and its lenders amid financial disputes.