Bang Si-hyuk Faces Arrest as $100M Fraud Allegations Rock BTS Empire

The Chairman of HYBE, Bang Si-Hyuk, has been accused of illegal trading regarding his company’s initial public offering. South Korean police have requested a detention warrant for the founder. Seoul Metropolitan Police has stated that they suspect Bang Si-Hyuk of violating the capital market laws of the country. They are accusing him of misleading investors.

The founder has found himself under fire after he allegedly encouraged early investors to sell shares of his compay before a public listing to a private firm that was run by his associates. Police have also alleged that after the the company went public, Bang profited from the sale of shared that the private entity engaged in, making up to 190 billion won, which is approximately $129.2 million.

A statement was released by Hybe, citing the legal counsel that Bnag has. It siad, “We regret that a detention warrant has been sought despite our full and consistent cooperation with the investigation over an extended period.” It also stated that the company will continue to coorperate with authorities investigating the matter.

Hybe is the company that is behind some of the biggest starts in the global musc scene, most notably the K-pop boy band, BTS. The repot has significantly impacted Hybe’s share, reversing an upward trajectory that it had.

There is a travel ban that was imposed on Bang as part of the investigation. The United States embassy in Seoul has recently asked for Bang to be allowed to travel out of the country, as reported by the National Police Agency. This was in direct relation to July 4th celebrations being held in the country, and so that the cmopnay may holds talks about global BTS tour.

So far, a warrant for detention has only been requested by the police, and yet to be reviewed by Seoul Southern District Prosecutors’ Office. A granting of the detention warrant may result ion Bang’s arrest. According to local reports, it could take anywhere from two to three days to reveiw the warrant. The police can only go ahead once the court has deliberated on the warrant and signed off on the arrest.

The warrant for the arrest could not be more ill-timed, as BTS is currently on the global comeback tour after 4 years of absence, thanks to the mandatory service clause that South Korea’s laws impose on able-bodied citizenry.