SEOUL, South Korea (AP) — South Korean police said Tuesday they are seeking to arrest music mogul Bang Si-Hyuk, chairman of the agency behind K-pop supergroup BTS, as they expand an investigation into allegations that he illegally gained more than $100 million in an investor fraud scheme.

The Seoul Metropolitan Police Agency confirmed that it has asked prosecutors to request a court warrant for arresting Bang, the billionaire founder and chairman of Hybe.

READ MORE: K-pop sensation BTS returns with a free comeback concert in Seoul after a 4-year hiatus

Bang's legal team in a statement to The Associated Press did not directly address the accusations but expressed regret that police were seeking his arrest "despite our full and consistent cooperation with the investigation over an extended period."

"We will continue to cooperate with all legal procedures and make every effort to clearly explain our position," the statement said.

Bang, who has been barred from leaving the country since August, is being investigated over allegations that he misled investors in 2019 by telling them Hybe had no plans to go public, prompting them to sell their shares to a private equity fund, before the company proceeded with an initial public offering. Police believe that the fund may have paid Bang around 200 billion won ($136 million) in a side deal that promised him 30% of post-IPO stock sale profits.

Hybe officials say Bang denies any wrongdoing.

Bang's legal troubles are a major public relations setback for Hybe, coming as BTS embarks on a global tour after a nearly four-year hiatus as its seven members served their mandatory military service, which is required for most able-bodied South Korean males.

BTS performed in front of tens of thousands of international fans at a free comeback concert in Seoul last month and have also held several concerts in South Korea's Goyang city and Tokyo. The group is to kick off a series of U.S. events with a concert in Tampa, Florida, later this month.

Bang, a music executive and producer who founded Hybe as Big Hit Entertainment in 2005, is widely seen as one of the most powerful figures in K-pop and has sought to capitalize on the global success of BTS to build his company into an international pop powerhouse.

In 2021, Hybe spent about $1 billion to purchase Scooter Braun's Ithaca Holdings, securing the management rights to artists like Justin Bieber and Ariana Grande.

While Hybe's roster includes some of K-pop's biggest acts, such as Seventeen, Le Sserafim and Katseye in addition to BTS, the company has seen turmoil in recent years, including a highly public fallout between Bang and star producer Min Hee-Jin over the popular girl group NewJeans.

The rift erupted in 2024 when Hybe attempted to remove Min as CEO of Ador, the subsidiary managing NewJeans, while accusing her of illegally attempting to take control of that company. Min, in turn, accused Bang of hostile treatment and of undermining NewJeans in favor of other groups, as the dispute moved into courts. Members of NewJeans, who have described Min as a mentor, tried to leave the label following her ouster, but a court last year ruled they must honor their contract through 2029.