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[All] Bang Si-hyuk in danger of life imprisonment, summary of Hive's 400 billion won fraudulent transaction charges
A complete summary of the reasons why Bang Si-hyuk is in danger of life imprisonment! From the allegations of fraudulent transactions worth 400 billion won to suspicions of irregularities in the listing process, we've put together an easy summary. Check it out right now.
Recently, Hive Chairman Bang Si-hyuk has been embroiled in a huge controversy over fraud charges that could lead to a 'life sentence'.
Public attention is focused on the Financial Supervisory Service as reports emerge that it is preparing to directly request an investigation by the prosecution.
In this article, I will briefly and clearly summarize the fraud allegations surrounding Chairman Bang Si-hyuk regarding the Hive listing.
1. Bang Si-hyuk, possible life sentence? Case overview
- The crux of the matter : Just before Hive's listing in 2019, Chairman Bang Si-hyuk told investors: Lie about "no plans to go public" Suspicion of having done so
- Problem behavior : At that time, the IPO process was actually underway, and the company was expected to make huge profits through the listing.
As a result, existing investors who sold the stocks at a low price suffered losses, and Bang Si-hyuk earned 400 billion won in profits through a fund established by an acquaintance.
2. What are the specific allegations and fraudulent transactions?
The charges applied by the Financial Supervisory Service are 'Fraudulent unfair trading under the Capital Market Act' no see.
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- Hiding or providing false information to investors - In case of inducing stock trading with false information
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👉 Bang Si-hyuk is being discussed as having the highest level of punishment possible, given that he received a settlement of 400 billion won.
3. What happened when Hive was listed?
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2019: Bang Si-hyuk's side informs existing investors that "there are no plans for listing"
At the same time: Signed contract for designated audit for listing (Han Young Accounting Corporation)
Afterwards, Hive's shares were sold to a PEF (private equity fund) created by an acquaintance of Bang Si-hyuk.
The fund signed a contract to pay 30% of its profits to Bang Si-hyuk.
The listing was actually completed on KOSPI in October 2020. |
In all these trends, Bang Si-hyuk Circumstances in which information was intentionally hidden As this piled up, problems arose.
4. What is Hive’s position?
A Hive official stated the following to the press:
“All transactions were conducted legally after obtaining legal advice.”
However, the Financial Supervisory Service is known to be focusing on actual actions rather than formalities, and is taking a close look at deceptive transaction structures and conflicts of interest issues.
5. Is it really possible that Bang Si-hyuk will be sentenced to life imprisonment?
| item | explanation |
| Related Laws | Article 443 of the Capital Market Act |
| Punishment criteria | If profits exceed 5 billion won through unfair trading, life imprisonment or imprisonment for 5 years or more |
| Actual income | About 400 billion won (estimated by the Financial Supervisory Service) |
| Prosecution investigation | Plans to request investigation through fast track |
Q&A: Summary of questions regarding Bang Si-hyuk fraud allegations
Q1. Can Bang Si-hyuk really be sentenced to life imprisonment?
A. Yes. If the charges are confirmed and the profit amount is in the range of 400 billion won, life imprisonment is possible under the Capital Markets Act.
Q2. Are investors harmed?
A. Some existing investors sold their stocks just before Hive's listing and ended up suffering losses.
Q3. Is there any problem with Hive?
A. The focus of the investigation is not the company itself, but rather the transaction structure involving Bang Si-hyuk as an individual.
Q4. Will this have any impact on Hive’s stock price in the future?
A. Criminal charges against the CEO could have a short-term negative impact on stock prices and investor sentiment.
Bang Si-hyuk Incident: Not Just an Entertainment Industry Issue
This time, the allegations against Chairman Bang Si-hyuk are expanding beyond a simple entertainment industry controversy to an issue of capital market transparency.
It is an issue that affects the credibility of the financial system, including the fairness of the listing process, investor protection, and conflicts of interest.
Depending on the results of the future investigation and whether the prosecution indicts, the ripple effect across the Korean capital market is expected to be significant.
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