Technology firm Think & Learn Pvt must freeze $533 million to protect funds from disgruntled lenders who claim the cash can only be used to pay their fees, a US judge said on Thursday.

U.S. Bankruptcy Judge John Dorsey’s decision is a bittersweet victory for lenders. They earlier asked that the money be placed under federal court control to prevent the cash from being spent by the education technology company, which operates as Byju’s.

Judge Dorsey’s order targets Riju Ravindran, one of the company’s directors and brother of founder Byju Raveendran.

Ravindran was also ordered to help resolve one of the mysteries at the heart of the court dispute: the location of the money. Judge Dorsey said: “I don’t believe him when he says he can’t” know the position from “thinking and learning”.

Representatives for Think & Learn declined to respond to requests for comment.

Ravindran’s attorney, Sheron Korpus, argued that any financial distress suffered by Think & Learn should be borne by the lenders. Copps told the judge the company was justified in withholding the funds from lenders because they were too aggressive in claiming default on the debt. Think & Learn is fighting the lender in state courts in Delaware and New York.

The lenders had previously taken control of a holding company set up by Think & Learn and issued $1.2 billion in debt. That unit, Byju’s Alpha, is currently in bankruptcy under Judge Dorsey’s watch. Ravindran is appealing the Delaware Chancery Court’s decision to grant the seizure.

At the start of a bankruptcy hearing Thursday in Wilmington, Del., Judge Dorsey ordered the arrest of the founder of a small Florida hedge fund after he refused to reveal where Think & Learn allegedly hid cash. If the U.S. Marshals are able to find William C. Morton, he will be held in contempt of court on an order from Judge Dorsey. Morton must also pay $10,000 a day until he provides details of the money, which was briefly parked at hedge fund Camshaft Capital Fund.

The missing funds are at the center of a battle between lenders owed more than $1.2 billion and Think & Learn. Byju’s Alpha lawyer Benjamin Finestone said last week that the $533 million was transferred to Morton’s hedge fund and then to an unnamed offshore trust.

Finestone told the hearing Byju’s was in serious financial trouble and faced disputes with shareholders and court action with lenders. Ravindran also testified Thursday that three of Think & Learn’s six directors have resigned, leaving only himself, his brother and his sister-in-law in charge of the company.

“It’s very important that we get these funds because the walls are coming down,” Fenstone told Judge Dorsey during the hearing.

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