Illicit Trading, Using BTS As Collateral, Connection To A Fugitive — Whistleblower’s Bombshell Press Conference Against Bang Si Hyuk Stirs Uproar

On March 3, KST, a whistleblowing press conference was held by an entity named K-Enter BigHit Archive, during which serious allegations of breach of trust and trading violations were leveled against HYBE chairperson and founder, Bang Si Hyuk.

The bottom line of these extensive allegations was that Bang’s “HYBE Empire” is built on the foundation of a “black cartel” tied to Kim Jun Beom from the former entertainment company Signal Entertainment Group. Aside from the already ongoing insider-trading investigation against Bang,  K-Enter BigHit Archive claimed that the HYBE founder had engaged in multiple other illegal activities to build and grow HYBE.

Possible breach of trust:

This allegation centers on a 2015 investment deal between HYBE and Signal Group. The latter bought ₩6.00 billion KRW (about $4.04 million USD) worth of convertible bonds from HYBE. In 2016, Signal could have turned the bond into company shares, in which case it would have owned about 31% of HYBE and made very large profits. Instead, it gave up the right to convert the bonds and only took back the original ₩6.00 billion KRW (about $4.04 million USD).

This act raises suspicions of occupational breach of trust. At that time, Bang Si Hyuk was simultaneously serving as an internal director at Signal, which already consisted of a conflict of interest. In addition, he was also in a position to know about the Financial Supervisory Service’s investigation into Kim Jun Beom’s unfair trading.  So, it is suspected that Bang had a role in Signal abandoning its conversion rights to protect his management control on HYBE and, in the process, harmed Signal’s shareholders.

BTS used as collateral:

To raise money for the bond repayment, on May 26, 2016, Bang issued Redeemable Convertible Preferred Shares (RCPS) to special-purpose entities, including WellBlink Limited, guaranteeing 8% annual compound interest. The agreement reportedly included a toxic clause that stated if any member of BTS left the group (except due to death), investors could demand a repayment.

In conclusion, Bang allegedly used HYBE’s core asset, its artists, as collateral for debt to protect his control and prevent dilution of his own shares in HYBE.

Misleading shareholders before IPO:

This allegation aligns with the current investigation against Bang Si Hyuk’s alleged involvement in illicit trading. In 2019, when HYBE started preparing for its IPO, it allegedly divided and deceived shareholders. While it told existing shareholders that there were no plans for an IPO, other entities, such as WellBlink, had privileged knowledge that HYBE had already applied for a designated audit, a mandatory step toward public listing.

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While existing shareholders sold their shares at a discount, they were acquired by special-purpose companies backed by private equity funds such as Eastone Equity Partners. These entities sold a large amount of the shares after HYBE’s IPO, earning billions in profit, and then suddenly dissolved in 2021.

Possible hidden links to fugitive businessman Kim Jun Beom:

According to K-Enter BigHit Archive, some of the private equity funds that gained billions through HYBE’s IPO might have links to Kim Jun Beom, the former de facto owner of Signal Group and currently a fugitive facing criminal charges.

For example, Newman Equity and MJ Holding Company both share the exact same address and are run by Kim’s close associate. The two companies were established only 18 days apart in 2019. These parallels raise suspicions that, though Signal Group withdrew its conversion rights, Kim’s network may have secretly operated behind private equity funds to still earn profits through HYBE.

Additionally, Bang Si Hyuk allegedly indirectly transferred the business rights related to HYBE artists as compensation for the waiver of HYBE’s convertible bonds in 2016. The company Bitro, which produced and distributed BTS light sticks and merchandise, passed through Starcamp 202 and Deco&Ei (both invested in by Signal) and was eventually sold to the listed company N2Tech, whose CEO is a close associate of Kim Jun Beom.

Suspicious acquisition and probable money laundering through crypto:

The final allegation involves a deal by a subsidiary of Netmarble.

In 2022, Netmarble F&C bought a company connected to Kim’s associate Lee Sung Jin for around ₩40.0 billion KRW (about $26.9 million USD), giving the sellers (including N2Tech and MJ Holding Company) ₩39.7 billion KRW (about $26.7 million USD) in stock disposal profits. However, just three years later, in March 2025, the company sold the business for just ₩8.00 billion KRW (about $5.39 million USD) after writing off large losses.

Netmarble F&C also alleged loaned around ₩30.0 billion KRW (about $20.2 million USD) to Lee, with ₩12.0 billion KRW (about $8.08 million USD) transferred using the stablecoin USDC through a Singapore subsidiary. Since tracking such a transaction is very difficult, suspicions are that HYBE and Netmarble committed overseas asset flight and money laundering.

Notably, Netmarble is the second-largest shareholder of HYBE, and Bang Jun Hyuk (Netmarble chairman) is related to Bang Si Hyuk. Therefore, the allegations suggest that Bang Jun Hyuk may have provided delayed compensation to the Signal Entertainment Group faction that helped defend Bang Si Hyuk’s control of HYBE, at the expense of shareholders.

The K-Enter BigHit Archive also stated that it will submit an audio recording to investigative authorities in which Bang allegedly offered financial compensation to Kim Jun Beom in exchange for his company’s withdrawal of conversion rights for BigHit Entertainment. It also announced its intention to file complaints against Bang and Kim on charges of breach of trust and violations of the Capital Markets Act.

These allegations have sparked heated reactions across community sites, with many expressing concerns over how little press coverage has been given to the issue.

• “Even the YouTube rumor-mongers were pumping out juicy articles before, but now they’re not reporting on this? That’s legendary. It’s not like there’s only one or two shady things going on.”
• “See how quiet everyone is about it.”
• “Try searching Bang Si Hyuk on Naver. Right now, they’re spreading a lot of cash around to bury the stuff revealed in the press conference.”
• “Whoa.”
• “It’s not like this shady stuff is anything new — I really hope HYBE gets completely torn apart over it.”
• “This needs to be properly investigated.”