BTS' parent company HYBE hit with major legal trouble

BTS' parent company, HYBE, recently got in legal trouble after being accused of grave accusations, including fraud.

The step was taken on Thursday, July 24, when the company’s Seoul headquarters came under legal investigation under financial crime as it involves alleged stock manipulation and fraud.

In its official statement, the Crimes Investigation Unit of the Seoul Metropolitan Police Agency, stated, “We are conducting a search and seizure at HYBE's headquarters in Yongsan District.”

However, the company turned down all the allegations against the founder, Bang Soi Hyuk, in a statement, saying, “We will dutifully clarify that the listing at the time was carried out in compliance with all relevant laws and regulations.”

The latest move of the police raid on HYBE comes after the Financial Services Commission's Securities and Futures Commission filed a criminal complaint against Bang Si-hyuk, alleging he breached the Capital Markets Act with unfair trading practices and accused the company of crashing out $146 million before IPO.

If the allegations against Bang Si Hyuk along with the other three executives of HYBE are found to be true, they will face serious charges for unfair trade practices.