On August 12, 2025, News Portal reported that the production of BTS’s upcoming album in the United States was halted as HYBE's chairman, Bang Si-hyuk, returned to Seoul to face a police investigation. According to MBW, Bang Si-hyuk arrived at Incheon International Airport on the afternoon of August 11. He reportedly cut short his stay in the U.S., where he had been overseeing BTS’s album preparations. The sudden halt comes amid increasing legal troubles for the executive. Police are investigating allegations of securities fraud related to HYBE’s 2020 initial public offering. The report stated that investigators are examining whether Bang Si-hyuk misled investors, including venture capital firms, into believing the IPO would be delayed. This led them to sell shares to a special purpose company linked to HYBE executives.Regulators claimed this company sold shares after the IPO. They alleged that Bang Si-hyuk received 30% of the profits, totaling about 190 billion won (USD 137 million). HYBE has confirmed it plans to fully cooperate with authorities. According to Music Business Worldwide, the news comes after a leaked email first obtained by The Korea Herald. In the email, HYBE's Chairman told staff he would return to Korea to address the situation directly. He also said his extended absence may have caused confusion and frustration within the company. BTS, who have been working in Los Angeles since July for their 2026 comeback, are now reportedly pausing album production until further notice.More about Bang Si-hyuk’s case and ongoing investigationsThe legal dispute revolves around whether a private profit-sharing agreement between Bang Si-hyuk and a private equity fund falls under Article 178 of the Capital Market and Financial Investment Business Act, which prohibits unfair trading practices. News Portal noted that many legal experts believe applying this law to the case will be difficult because the contract was a civil agreement between specific parties, not an act impacting the broader securities market. Past Supreme Court rulings, including the 2018 decision '2013do6962,' have held that the provision safeguards market fairness for the public rather than individual investor assets.HYBE's Chairman Bang PD (Images via Instagram/@hitmanb72)Bang Si-hyuk maintains that all contractual details were verified by legal counsel during the IPO process and disclosed to the underwriter. He argued that this exempts the case from Article 178. Moreover, claims that he secretly initiated a designated audit to deceive investors may stem from a misunderstanding, as evidence suggests the request came from existing shareholders. Still, police have raided multiple sites, including HYBE’s headquarters and the Korea Exchange, as part of their investigation. Adding to HYBE’s challenges, the National Tax Service launched a 90-day special tax probe into the company in late July, deploying two investigative teams to its Seoul office. The inquiry could extend to 120 days and involves a detailed review of accounting records. HYBE has appointed Kim & Jang Law Firm to manage its legal and tax responses. Fraudulent trading involving profits of over 5 billion won can carry sentences of five years to life imprisonment. This means the case could have long-term implications for Bang Si-hyuk and the company. Despite the turbulence, HYBE recently posted a 10.2% year-on-year increase in Q2 revenue to 705.6 billion won, with operating profit up 29% to 65.9 billion won.TXT Charts @TXTChartDataLINKHYBE achieved its highest-ever 2nd quarter sales with consolidated revenue of KRW 705.7B (up 10.2% year-on-year) and operating profit of KRW 65.9 billion (up 29.5%). This was driven by world tours by BTS, Seventeen & @TXT_members as well as robust album and digital music sales.Meanwhile, BTS has been in Los Angeles since July for an intensive songwriting camp. All seven members are working closely with international producers on their planned Spring 2026 album. As shown through the clips shared by members, they are developing the album's concept, recording tracks, and participating in physical training sessions, with some members spotted at local gyms.Speculation about a potential collaboration with Charlie Puth also emerged after sightings of the artist with the group.