**South Korean police referred HYBE chairman Bang Si-hyuk and several executives to prosecutors on September 3, 2026, on charges of fraudulent unfair trading under the Capital Markets Act tied to 2019 investor disclosures ahead of the company’s 2020 IPO.** Prosecutors must now decide whether to indict, request further investigation, or drop the matter. Earlier in 2026, they twice rejected police requests for an arrest warrant, citing insufficient evidence and disagreements over the appropriate legal framing. Bang and HYBE have consistently denied wrongdoing and supplied materials supporting compliance with disclosure rules. The case, opened in December 2024 and involving raids and a travel ban, has faced repeated procedural delays and questions about proof of the specific capital-markets violation. With the referral occurring late in the year and prosecutors exercising independent discretion in complex financial cases, traders assign a 67% probability that no formal charge will be filed by the end of 2026.