BTS agency HYBE came under fire recently for illegal fraudulent stocks inside the company. Authorities have raided the company in light of the situation. The raid was done as part of an investigation into alleged fraud related to securities. On July 24, 2025, the raid took place and was carried out by the Seoul Metropolitan Police Agency’s Financial Crime Investigation Unit. The raid was caused by the complaint filed by the Securities and Futures Commission, which currently operates under Financial Services Commission.
Among all the criminal controversy, HYBE's founder and criminal chairman Bang Si-hyuk has been behind the whole mastermind. He and the other three executives have been accused of manipulating early investment of the company around 2020 Initial Public Offering (IPO). Authorities have claimed that the founder of HYBE have misled pre-IPO investors into selling their shares to investment firm which is secretly linked to him. Later these shares were sold in massive profit once HYBE went public.
Investigators have done their probe and estimated the illegal profits could range from 200 billion won (approx $146 million) to nearly 400 billion won (around $290 million). These accusations are massive, and it could lead to significant damage to the company's reputation if proven right by the authorities. It can also lead to severe company's damage of reputation and raise questions about South Korea's governance in the entertainment sector.
Netizens reactions to this controversy:
Amid the controversy, BTS agency HYBE has issued a statement where they have clarified of no such illegal activities. The agency will cooperate with authorities in any probe that is needed to be done. They have ensured transparency and had promised to clear out any misunderstanding.
All these comes up in a time when BTS members have completed their military services and are planning to make their comeback in 2026. These timing of controversy and investigation could complicate those future endeavors and hugely impact investors' confidence.
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