Archegos' Bill Hwang Sentenced to 18 Years in Prison for Massive U.S. Fraud

November 21, 2024

Bill Hwang, the founder of Archegos Capital Management, was sentenced to 18 years in prison for a scheme involving wire fraud, securities fraud, and market manipulation, which led to the collapse of Archegos in March 2021.

This collapse caused over $10 billion in losses for Wall Street banks and wiped out over $100 billion in market value for stocks tied to Hwang's firm.

Key Points:

Charges: Hwang was convicted in July 2024 on 10 counts, including fraud and manipulation.
Losses: The losses incurred were unprecedented, with banks like Credit Suisse losing $5.5 billion. The scale of the collapse prompted the judge to describe it as involving larger losses than any other case he'd handled.
Sentencing Context: Prosecutors sought 21 years, citing the case as a "national calamity." The judge, Alvin Hellerstein, sentenced him to 18 years but has not yet decided on forfeiture or restitution.
Defence Argument: Hwang's lawyers argued for no prison time, citing his low likelihood of reoffending and his philanthropic efforts through the Grace and Mercy Foundation.