It has been confirmed that the police have applied for a search and seizure warrant for Chairman Bang Si-hyuk of Hybe, who is accused of deceiving investors during the listing process and making illicit profits of over 100 billion won.
The Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit applied for a search and seizure warrant for Chairman Bang Si-hyuk and the Hybe headquarters in Yongsan-gu, Seoul on the 17th.
Chairman Bang is accused of deceiving existing investors, including venture capitalists (VCs), in 2019 before Hybe’s listing, that the IPO plan would be delayed and having them sell their shares to a special purpose corporation (SPC) established by a private equity fund invested by Hive executives.
The existing investors listened to Chairman Bang and sold their shares to the private equity fund invested by Hive executives, but the police believe that Hive was already in the process of going public.
The SPC sold its shares after Hive went public, and the police suspect that Chairman Bang made a profit of over 100 billion won in the process.
It is reported that the Seoul Metropolitan Police Agency’s Financial Crime Investigation Unit has completed the analysis of related data, including the flow of funds, by receiving data from related organizations such as the Korea Exchange and the Financial Supervisory Service.
It is also reported that the investigation has progressed significantly and is nearing its conclusion, including the summoning and questioning of the investors in the relevant private equity fund.
Meanwhile, the Financial Services Commission’s Securities and Futures Commission (SFC) also reported and notified the prosecution to Chairman Bang on charges of violating the Capital Market Act’s prohibition of unfair trading practices at its regular meeting on the 16th.
