BTS founder faces arrest risk in $100 million scandal
South Korean authorities are seeking an arrest warrant for Bang Si-hyuk, the founder of HYBE and the mastermind behind K-pop sensation BTS, following allegations of a $136 million financial fraud scheme. Prosecutors claim Bang misled investors in 2019 regarding the company’s IPO plans, allowing him and a specific investment fund to profit significantly from subsequent stock price surges. Although Bang’s legal team denies the charges and maintains his innocence, the music mogul has been under a travel ban since August as the investigation continues.
A major scandal involving the popular K-pop group BTS is unfolding in South Korea. The country's government is accusing the group's founder and producer, Bang Si-hyuk, of potential financial fraud related to investors. This was reported by the international Reuters agency.
It is reported that law enforcement agencies are seeking an official arrest warrant for the businessman. The accusations are related to the activities of HYBE, the music company led by Bang Si-hyuk, through which BTS achieved global fame.
According to the investigation, in 2019, Bang Si-hyuk misled investors by stating that the company would not go public. As a result, some investors sold their shares to a special investment fund. However, shortly after, the company did conduct an IPO, and the share price surged.
Law enforcement agencies believe this scheme was pre-arranged, and the fund made significant profits by buying shares at a high price. Bang Si-hyuk is said to have also benefited from this process, reportedly earning approximately 30% profit, nearly 200 billion won ($136 million).
The producer's defense team, however, denies all accusations. In a statement to the Associated Press, they expressed their dissatisfaction with attempts to arrest Bang Si-hyuk, despite his long-standing cooperation with the investigation. They emphasized their continued participation in legal proceedings and defense of their position.
It is noted that Bang Si-hyuk has been prohibited from leaving the country since August.
As a reminder, he founded the music company Big Hit Entertainment in 2005. Several years later, in 2013, the group BTS was formed under this label and achieved great success on the world stage in a short period.
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