A lawsuit filed in a Delaware federal court accuses BYJU'S of unlawfully transferring funds from its US units.
The lawsuit claims that funds intended for creditor payments were diverted to Whitehat Education Technology.
The court-appointed trustee is seeking the return of around $700,000 and accuses individuals in India of attempting to access the US affiliates' accounts.
The lawsuit is part of a broader conflict between BYJU'S and its lenders, who claim the edtech company owes over $1.2 billion.