Bang Si-hyuk, South Korean music producer and chairman of K-pop agency HYBE, renowned for creating BTS, is facing arrest due to alleged investor fraud.

South Korean police have moved court seeking an arrest warrant against Si-hyuk due to allegations of illegal earnings, claiming he illicitly obtained over USD 100 million through an investor fraud scheme.

On Tuesday, the Seoul Metropolitan Police Agency confirmed that it has asked prosecutors to request a court order seeking a formal warrant to be issued under Si-hyuk’s name.

The representatives of HYBE have not yet issued any statement.

Si-hyuk has been under investigation since November over claims that he misled investors in 2019 by assuring them HYBE had no plans to go public, prompting them to sell their shares to a private equity fund ahead of the company’s eventual IPO.

Police suspect the fund may have paid Si-hyuk approximately 200 billion won (USD 136 million) through a side agreement that entitled him to 30% of the profits from post-IPO stock sales.

Bang Si-hyuk founded Big Hit Entertainment in 2005, which grew into the multinational conglomerate HYBE Corporation.

In 2010, he formed BTS with the intention of creating an idol group where members could express their individualities rather than strictly following a pre-scripted image. Kim Namjoon (RM) was the first member to join BTS.

Suga and J-Hope were among the earliest trainees who remained with the group through its formation.

The full seven-member group—Jin, Suga, J-Hope, RM, Jimin, V, and Jungkook—officially debuted on June 13, 2013.

Bang Si-hyuk’s legal troubles surfaced at a time when BTS are preparing to embark on their Arirang World Tour, marking their return to stage after a four-year hiatus.

The group recently wrapped up their Tokyo concert on April 18 and is now gearing up for their shows in North America, with stops in cities including Tampa, El Paso, Stanford and Las Vegas through late May.

The tour is expected to move to Mexico City in early May, followed by a European leg spanning Madrid, Brussels, London, Munich and Paris from late June to mid-July.