On July 24, The Seoul Metropolitan Financial Crime Investigation Unit is conducting a search and seizure at HYBE’s headquarters in Yongsan-gu, Seoul.

Police are investigating the suspicions of fraudulent illegal transactions by HYBE’s chairman Bang Si Hyuk.

Chairman Bang is accused of telling existing HYBE investors that there would be no IPO in 2019, having them sell their shares, but then proceeding with an IPO and making billions in profit.

In addition, he is accused of having existing investors sell their stocks to a special purpose corporation (SPC) established by a private equity fund.

At the time of establishment, two of the three registered executives of the fund were from HYBE, both known to be close associates of Chairman Bang.

On July 17, the police applied for a search warrant for the HYBE headquarters. However, due to controversy over a conflict over investigative leadership, the case was directed to the Financial Supervisory Service’s special prosecutors on July 21.