HYBE Founder Bang Si Hyuk’s Home Raided Amid Financial Fraud Investigation

HYBE founder and chairperson Bang Si Hyuk‘s residence was reportedly raided by authorities as part of the ongoing probe into his alleged financial fraud.

On December 18, KST, E Today reported that the Financial Supervisory Service’s (FSS) Special Judicial Police for Capital Markets conducted a search and seizure operation targeting Bang’s home and office over a two-day period, starting on December 17, KST. This was conducted as part of a comprehensive investigation into Bang’s alleged fraudulent trading under the Capital Markets Act.

Investigation Into HYBE Bang Si Hyuk’s Alleged Illegal Actions Gets A Major Breakthrough

According to the police investigation, Bang Si Hyuk is suspected of deceiving existing shareholders into believing that his company’s IPO would be delayed during the process of purchasing shares from them prior to HYBE’s 2019 listing, despite the company being actively preparing for the IPO at the time. Additionally, he allegedly directed the sale of shares held by a special purpose company (SPC) established by a private equity fund involving HYBE executives. This private equity fund is known to be a planned entity that the said HYBE executives directly funded.

Currently, two parallel investigative fronts are being carried out for Bang’s case. The Seoul Metropolitan Police Agency launched a probe last December, while prosecutors referred the case of his alleged illegal trading to the FSS’s Special Judicial Police for Capital Markets for investigation in July.

The FSS’s decision to initiate a compulsory investigation, despite the police probe nearing completion, suggests that additional examination beyond the facts confirmed through the police investigation was necessary. The FSS has refused to provide any further details about the status of the special judicial police investigation at this time.

Meanwhile, Bang’s HYBE-related assets were also seized earlier this month. Read more here:

Court Orders Seizure Of Bang Si Hyuk’s Assets Worth Over 100 Million Dollars