South Korean entertainment powerhouse HYBE is facing renewed criticism in early January 2026 over allegations that it siphoned roughly $83 million (approximately £62 million) in revenue linked to BTS to settle debt tied to the 2021 acquisition of Ithaca Holdings, previously led by music executive Scooter Braun. The controversy has surged online as fans prepare for BTS's next activities and demand transparency about how the group's earnings are used.
Critics argue the move raises ethical concerns over resource allocation, suggesting that money generated largely through BTS's tours, sales and global brand partnerships may have been directed toward covering third-party financial obligations rather than reinvested into core K-pop operations. The resurfacing of these claims comes amid heightened anticipation of BTS's full group comeback after members' military service, adding fuel to public debate.
Background on the HYBE Financial Allegations
The allegations trace back to HYBE's 2021 acquisition of Ithaca Holdings, a US entertainment company that included assets managed by Scooter Braun. The deal was widely reported at the time to be worth more than $1 billion (approximately £743 million) and was positioned as a strategic effort to expand HYBE's global footprint and artist portfolio.
During the acquisition, HYBE also assumed approximately ₩120 billion, or about £62 million, in related debt. Critics argue that because BTS generated the majority of HYBE's revenue during that period, funds used to cover these liabilities were effectively tied to the group's earnings, a claim that has circulated widely across online communities. Supporters counter that debt absorption is a standard part of large-scale acquisitions and does not automatically indicate misuse of artist revenue, while noting that HYBE has not issued a specific response to the renewed claims.
Fan Outrage and Netizen Reactions
Social media sentiment has been sharply critical of HYBE following the circulation of these financial allegations, with many fans expressing disappointment and concern over how BTS's contributions to the company have been recognised.
I hope BTS leaves this agency.
— 𝗣𝗿𝗮𝘆 𝗳𝗼𝗿 𝗷𝘂𝘀𝘁𝗶𝗰𝗲 ⁷ (@jenRzun) January 6, 2026
Another reaction underscored the ethical and financial concerns at the centre of the controversy, with users questioning how BTS's earnings may have been allocated. The response reflects wider unease around transparency and trust in HYBE's handling of artist-generated revenue, as discussion continues across online platforms.
Shocking if true.$83 million from BTS’s earnings allegedly used to settle Scooter Braun’s debt raises serious ethical and financial concerns.
— 𝑼𝒏𝒄𝒆𝒏𝒔𝒐𝒓𝒆𝒅 𝑴𝒆 (@Nation_First_X) January 6, 2026
Industry Implications and Corporate Response
Financial analysts note that allegations like these, even without legal findings, can carry reputational risks for a company positioning itself as a global entertainment leader. Observers warn that if BTS's success is seen as being used disproportionately to support wider corporate obligations, it could weaken stakeholder confidence and influence investor sentiment.
Supporters of HYBE argue that acquisition-related debt and operating costs are standard aspects of multinational expansion and are not directly tied to individual artists' earnings. They stress that BTS's revenue contributes to the company's overall financial structure, rather than being earmarked solely for external liabilities, a distinction they say is often overlooked in online debate.
What's Next for BTS and HYBE
As BTS's anticipated activities draw nearer, scrutiny of HYBE's financial practices is unlikely to ease. Fans and industry observers are watching closely for how the company addresses ongoing questions around transparency and the allocation of earnings.
The HYBE financial allegations have already triggered widespread discussion across the K-pop fandom and the wider entertainment industry. As the company navigates the controversy, its response to fan concerns and artist interests may prove as significant as its broader strategic decisions.
