A fraud case has been opened against a BTS producer in South Korea.

The police of the South Korean capital have initiated an arrest procedure for Ban Si Hyuk, the founder and chairman of the board of directors of HYBE Holding, which manages the BTS group. The top manager is charged with investor fraud in excess of $100 million. This was reported on April 21 in The Guardian magazine.

"We will continue to cooperate with all legal procedures and will make every effort to make our position clear," Ban Si Hyuk's legal team said in a statement.

The businessman's lawyers expressed regret over the police's decision to seek arrest, stressing that their client "has been fully and consistently cooperating with the investigation for a long time." The Seoul City Police Agency confirmed that it has sent a request to the prosecutor's office to request an arrest warrant from the court. The lawyers did not comment on the specific charges in the statement.

A criminal case was opened in November on suspicion of securities fraud: the investigation believes that in 2019, Ban Si Hyuk misled investors by assuring them that HYBE had no plans to enter the stock exchange. After they sold their shares to a private investment fund, the holding held an IPO. According to investigators, the fund paid about 200 billion won ($136 million) to the founder of the company as part of an accompanying deal that provided for the transfer of 30% of the profits from the sale of shares after the placement.

The news is being updated