Bang is accused of misleading investors and venture capitalists (VCs) by claiming there were no plans for an initial public offering (IPO) before HYBE's 2019 listing. It is alleged that he then facilitated the sale of HYBE shares to a private equity fund (PEF) established by an acquaintance. Following HYBE's IPO, the PEF sold its shares, and Bang reportedly received 30% of the profits as per a pre-arranged shareholder agreement.
Bang's representatives argue that there was no deception involved, claiming that the investors themselves requested the arrangement. They also assert that the profit-sharing terms were initially proposed by the investors.