6 days ago
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BTS Jungkook was nearly ensnared in a shocking $5.6 million stock fraud scheme involving the HYBE agency. According to a report by Biz Korea, an individual attempted to illegally transfer and sell HYBE shares valued at 8.44 billion KRW ($5.6 million). This exploits Jungkook’s absence due to his military service.
BTS Jungkook Becomes A Victim Of Stock Fraud Scheme
Reports reveal that the suspect managed to transfer 33,500 shares of HYBE stock to a different account. The plaintiff has successfully sold 500 of those shares for approximately KRW 126 million ($86,000) to a third party. Jungkook, who enlisted for mandatory military service in December 2023 was completely unaware of the fraudulent activity. The incident reportedly occurred on January 6, 2024—just a month after his enlistment.
Alarmingly, the perpetrator allegedly opened three illegal securities accounts in Jungkook’s name without his consent. In response to the unlawful stock transfer, Jungkook took legal action by filing a civil lawsuit in March 2024, seeking the return of the 500 shares that had been wrongfully sold.
As reported by Jagran English,“As soon as the company and the artist became aware of the criminal activity, the company and the artist took measures to prevent substantial damage by suspending payments to the account and restoring the account. JUNGKOOK filed a civil lawsuit in 2024 seeking the return of 500 shares that were transferred to a third party, and the Seoul Western District Court ruled last month that the third party must return the shares to JUNGKOOK. Apart from legal measures, we have also taken measures to strengthen information security related to artist personal information and devices to prevent recurrence.”
Big Hit Music shares statement on JUNGKOOK having 8.4 billion won worth of shares on HYBE stolen:
— “As soon as the company and the artist became aware of the criminal activity, the company and the artist took measures to prevent substantial damage by suspending payments to the… pic.twitter.com/SZMbIhYlH1
BTS Jungkook Wins Lawsuit Against Stock Fraud
The Seoul district court ruled in BTS Jungkook’s favour. They confirmed that there was no legitimate stock transfer agreement and recognised him as a victim of identity theft. The court further mandated that the third party return the equivalent funds. It is worth approximately $20,000, which had been used to purchase the stolen shares via cryptocurrency.
Recent Developments In The Fraud Scheme
However, despite the court ruling in his favour, the identity of the person behind the stock theft remains unknown. Investigations are ongoing, but no definite leads have emerged thus far. Given the level of access required to compromise Jungkook’s banking details and passwords, authorities suspect that the perpetrator may be someone from within his close circle. Meanwhile, South Korea’s court dismissed the third party’s defence. They stated that they failed to verify the rightful stockholder’s identity. Also, since the shares belonged to a significant HYBE shareholder.
