South Korean police are seeking a detention warrant for the founder and chairman of the Korean entertainment company behind K-pop supergroup BTS.
The Seoul Metropolitan Police Agency has requested a warrant against Bang Si-hyuk, the head of HYBE, in connection with allegations of illegal trading surrounding the company's initial public offering.
Bang is accused of violating capital market laws by misleading early investors ahead of the IPO and steering them to sell shares to a private equity fund linked to his associates. Authorities allege that after HYBE went public, the fund sold its stake and Bang received about 30% of the profits under a prior shareholder agreement, earning roughly $129.1 million.
USA TODAY contacted HYBE for comment on April 21, but has not received a response.
Bang has denied wrongdoing, and HYBE said in a statement, published by Reuters, that it is cooperating with the investigation and will "make every effort to clearly explain our position."
