BTS’ parent company is currently making headlines after South Korean police raided its Seoul headquarters over founder Bang Si Hyuk’s alleged stock fraud. Read on to know more.
BTS‘ parent company, HYBE, is facing serious allegations of fraud as it comes under investigation. The matter takes a series turn when South Korean police get involved in the case, going beyond typical fan speculation or social media rumors. The police are investigating the matter under financial crime as it involves alleged stock manipulation and fraud. On Thursday at 9 pm, the investigative authority raided HYBE Seoul headquarters, proceeding further with the search. For the unversed, HYBE is the company behind BTS. The founder of HYBE, Bang Si Hyuk, who holds the largest share in the company, is credited for transforming BTS from a small K-pop band to a global brand. However, the founder, along with three other representatives, is embroiled in a serious case of stock manipulation.
What is the controversy with BTS’ parent company, HYBE?
The investigation was confirmed by the Crimes Investigation Unit of the Seoul Metropolitan Police Agency, who said, “We are conducting a search and seizure at HYBE’s headquarters in Yongsan District.” The police raid on HYBE comes after the Financial Services Commission’s Securities and Futures Commission filed a criminal complaint against Bang Si-hyuk, alleging he breached the Capital Markets Act with unfair trading practices and accused the company of crashing out $146M before IPO. Bang Si Hyuk and the other three executives of HYBE are accused of manipulating shareholders to sell their shares so as to invest in a company secretly owned by the group. Later, the group came under the investigative radar after gaining profit from the shares, and if the allegations are found to be true, they will face serious charges for unfair trade practices.
What is the official statement of HYBE?
The company under suspicion denied all the allegations against the founder, Bang Soi Hyuk, and released an official statement stating, “We will dutifully clarify that the listing at the time was carried out in compliance with all relevant laws and regulations.” The company also promised to actively cooperate in the investigation. Currently, HYBE is gathering evidence to prove its Initial Public Offering (IPO) was done lawfully.
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