**Recent police referral of HYBE Chairman Bang Si-hyuk to prosecutors on September 3, 2026, centers on alleged violations of South Korea’s Capital Markets Act through fraudulent unfair trading tied to the company’s 2020 IPO (then Big Hit Entertainment).** Investigators claim Bang and associates misled existing shareholders in 2019 about listing plans to induce share sales to a linked private equity fund, while presenting the opposite view to fund investors, generating an estimated 263.1 billion won in illicit gains (with Bang reportedly linked to roughly 150–190 billion won of that total). A court has preserved the full amount for potential forfeiture. Prosecutors at the Seoul Southern District Prosecutors’ Office now review the file to decide on formal indictment, further investigation, or closure. Earlier police requests for arrest warrants were rejected twice in 2026, with authorities citing insufficient grounds for detention; the referral occurred without custody. Bang and HYBE maintain the transactions complied with applicable rules and have responded with evidence disputing the allegations. The September referral marks the latest step in a probe launched in late 2024, but the absence of detention, prior prosecutorial pushback, and pending review support the current trader consensus reflected in the 68% probability on “No” for charges materializing in 2026. Resolution timing remains subject to prosecutorial discretion and any supplementary inquiries.