**Police referred HYBE Chairman Bang Si-hyuk and four associates to prosecutors on September 3, 2026, without detention on charges of fraudulent unfair trading under the Capital Markets Act, alleging 263.1 billion won in illicit gains tied to 2019 pre-IPO share transactions.** Prosecutors had twice rejected police requests for arrest warrants earlier in 2026, citing insufficient evidence for detention and calling for further investigation. The case remains under prosecutorial review as of mid-October, with reports indicating differing views on the applicable charges—police favoring Capital Markets Act violations while prosecutors have leaned toward general fraud statutes. Bang and HYBE have consistently denied wrongdoing, asserting compliance with listing rules. Recent parliamentary scrutiny has highlighted tensions over the probe's length and outcome, but no formal indictment has been announced. These procedural hurdles, prior warrant rejections, and the absence of decisive prosecutorial action support trader consensus that formal charges are unlikely to occur before year-end.