BTS Agency's Chairman Referred to Prosecutors Over Alleged HYBE Investor Fraud

Bang Si-hyuk, the billionaire founder of HYBE and the man behind BTS' rise to global superstardom, has been referred to South Korean prosecutors over allegations that he misled investors before the company's 2020 stock-market debut.The Seoul Metropolitan Police Agency said Thursday, September 3, that Bang and four others, including HYBE executives and private-equity officials, were referred to the Seoul Southern District Prosecutors' Office on suspicion of violating the Capital Markets Act. Bang was referred without detention, and police did not seek an arrest warrant this time, TheStar reported.The investigation centers on events in 2019, when HYBE was still known as Big Hit Entertainment. Police allege that Bang told existing shareholders the company had no immediate plans to go public, despite preparations for an initial public offering already being underway.According to investigators, some shareholders then sold their stakes to a private-equity fund linked to people close to Bang. Police allege that investors in the fund were aware of the planned IPO.Big Hit eventually went public on South Korea's KOSPI market in October 2020. Authorities say the shares acquired through the fu...