Financial authorities to file a complaint against Bang Si-hyuk on fraud charges… Hive “will actively cooperate with the police and provide a thorough explanation.”

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Bang Si-hyuk, Chairman of HYBE, Imminent Prosecutorial Complaint for Fraudulent Trading Allegations

Financial authorities are reportedly planning to file a complaint against Bang Si-hyuk, Chairman of HYBE, for allegations of fraudulent trading under the Capital Markets Act.

According to the financial investment industry on the 9th, the Capital Market Investigation Review Committee, a deliberative body of the Securities & Futures Commission (SFC), held a meeting on the 7th and decided to recommend prosecutorial action against Chairman Bang, which will be discussed at the SFC's regular meeting scheduled for the 16th.

The complaint to prosecutors represents the highest level of sanction imposed on individuals suspected of unfair trading. The Financial Supervisory Service (FSS) has been investigating Chairman Bang for allegations of fraudulent trading.

Chairman Bang is accused of deceiving investors and existing shareholders, including venture capitalists (VCs), by stating that there would be no planned Initial Public Offering (IPO) before HYBE's listing, and of selling shares to a private equity fund (PEF) established by an acquaintance.

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In particular, it has been reported that Chairman Bang entered into a contract to share 30% of the profits from the share sale with the said PEF. It has also been pointed out that HYBE did not disclose this contract in its securities filing.

According to financial authorities, Chairman Bang is suspected of pocketing approximately 200 billion to 400 billion won in listing profits through this process.

In response, HYBE stated, "We apologize for causing concern regarding news related to our listing process," and added, "We are actively cooperating with the financial authorities and police in verifying the facts by providing a detailed explanation and related documents regarding the current allegations."

HYBE further expressed, "Even if it takes some time, we will diligently prove that the listing was conducted in compliance with laws and regulations."

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Image source: Bang Si-hyuk / News1, HYBE Entertainment

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