**South Korean authorities have investigated HYBE founder and chairman Bang Si-hyuk since late 2024 over 2019 allegations that he misled investors about plans for the company’s 2020 IPO, directing share sales to a private equity fund linked to an alleged side agreement yielding roughly 190–260 billion won in post-listing profits.** Police applied for an arrest warrant on fraudulent unfair trading charges under the Capital Markets Act in April 2026, but Seoul Southern District Prosecutors rejected the requests twice—first for insufficient evidence and again after supplementary work fell short—prompting police to review options for a potential third filing while the probe continued. By July 2026, prosecutors reportedly viewed the core allegations as difficult to substantiate and recommended considering alternative charges such as fraud, highlighting evidentiary challenges typical in intent-based financial cases. Bang has denied wrongdoing, cooperated with investigators, and remained subject to a travel ban imposed in 2025. With no formal indictment issued as of late August and the case showing limited momentum toward resolution before year-end, traders assign a 69% implied probability to “No,” reflecting the stalled procedural status and prosecutorial caution.