South Korean entertainment giant HYBE is facing renewed accusations over its 2021 acquisition of Scooter Braun’s Ithaca Holdings, with critics alleging that funds largely generated by BTS were used to cover significant inherited debt.

The allegations centre on approximately ₩120 billion KRW, or around $83 million, in debt that HYBE assumed as part of the deal. Online discussions claim this liability was effectively paid using company resources built primarily on BTS’s commercial success during 2020 and 2021, when the group accounted for the majority of HYBE’s revenue.

HYBE, then operating under the name Big Hit Entertainment, announced the acquisition of Ithaca Holdings in April 2021 in a deal initially valued at over $1 billion. The merger expanded HYBE’s presence in the US market and brought artists including Justin Bieber, Ariana Grande and Demi Lovato into its portfolio, along with Big Machine Label Group. Subsequent disclosures revealed the total cost rose to roughly ₩1.2 trillion, factoring in outstanding debts held by Ithaca.

Critics allege that the assumed debt originated from loans Scooter Braun took out to acquire Taylor Swift’s master recordings through Big Machine in 2019. Although those masters were sold in late 2020, reports suggest remaining liabilities were retained by Ithaca and later absorbed by HYBE as part of the acquisition.

To finance the deal, HYBE reportedly used 74% of its available cash reserves and secured additional loans amounting to ₩560 billion. During this period, BTS generated most of the company’s income through album sales, merchandise and global activities, making the group central to HYBE’s financial stability.

The issue resurfaced in early January 2026 following a viral post linked to an article by NewTamsa, prompting renewed fan backlash.