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.

The US embassy in Seoul reportedly asked authorities to allow Bang to travel while under investigation for fraudulent 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…