Prosecutors said Friday they have rejected a police request for an arrest warrant for Bang Si-hyuk, chairman and founder of K-pop powerhouse Hybe, who is accused of unfair stock trading.

Police are expanding an investigation into allegations that Bang Si-Hyuk illegally gained more than $100 million in an investor fraud scheme.

The founder and chairman of Hybe, Bang Si-hyuk, faces potential arrest as South Korean authorities seek a detention warrant against him.

Bang Si-hyuk, who created the supergroup, denies defrauding investors before his $7.3bn company went public.

Prosecutors said Friday they have rejected a police request for an arrest warrant for Bang Si-hyuk, chairman and founder of K-pop powerhouse Hybe, who is accused of unfair stock…