Police said Tuesday they have filed for an arrest warrant for Bang Si-hyuk, the chairman and founder of K-pop powerhouse Hybe, on suspicions of unfair stock trading.
Bang has been under investigation over allegations that he deceived investors in 2019 into selling their shares in Hybe before the company held an initial public offering, through which he pocketed nearly 200 billion won (US$135.9 million) in illegal profits.
The Seoul Metropolitan Police Agency said its request for a warrant is based on suspicions of fraudulent trading under the Capital Market Act.
Under that law, a person found guilty of making 5 billion won or more in profits by lying about financial investment products is punishable by life imprisonment or a prison term of at least five years.
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