Police have requested an arrest warrant for Bang Si-hyuk, the chairman of HYBE, on charges of violating the Capital Markets Act by engaging in fraudulent transactions.
The Seoul Metropolitan Police Agency’s Financial Crime Investigation Unit stated on the 21st that it requested a warrant for Bang on charges of fraudulent dealings under the Capital Markets Act.
Bang is accused of misleading investors in 2019 by claiming there were no plans to list HYBE, leading them to sell shares to a specific private equity fund (PEF) before the company went public.
Police believe that Bang received nearly 200 billion won in illicit gains by obtaining 30% of the capital gains post-listing, as per a secret agreement with the private equity fund.
Bang’s representatives argue that they did not deceive the early investors and that the investors themselves initially proposed the revenue-sharing terms.
Image source: Xportsnews
