The reason Mr. Bang Si Hyuk is suspected of earning more than 100 billion won (about 72.3 million USD) in illegal profits by defrauding investors during HYBE's listing process.
Bang Si Hyuk was accused of deceiving current investors, including venture capital firms, in 2019, before HYBE IPO (first public issuance of stocks), by providing false information that the company's listing would be delayed.
He was later accused of facilitating the sale of their shares to a special-purpose company (SPC) established by HYBE's executives through a private equity fund.
According to the police, investors believe Bang Si Hyuk's words and sell their shares to private funds. However, HYBE is said to have conducted IPO at that time.
After HYBE went public, SPC sold all of its shares, and police suspected that Bang Si Hyuk had personally earned more than 100 billion won through this sale.
The Financial Crime Investigation Agency is said to have completed the analysis of cash flow and related documents after receiving documents from the Korean Stock Exchange and the Financial Supervisory Authority.
The investigation is said to be in the final stages, with authorities also summoning private equity investors for questioning.
Meanwhile, on July 16, the Securities and Exchange Commission (SFC) under the Financial Services Commission transferred Bang Si Hyuk to the prosecution agency for violating the ban of the Capital Market Act on unfair trading practices.
Regarding this transfer, the South Seoul District Prosecutors' Office said that the case has been transferred to the Capital Market Special Justice Police under the Financial Supervision Agency for investigation.
