Sung Kook “Bill” Hwang, former billionaire and founder of Archegos Capital Management, was sentenced to 18 years in prison for his role in the firm’s dramatic 2021 collapse that caused over $10 billion in losses to Wall Street banks. U.S. District Judge Alvin Hellerstein handed down the sentence in Manhattan, citing the unprecedented scale of losses caused by Hwang’s market manipulation, securities fraud, and wire fraud. The implosion of Archegos, which managed $36 billion but leveraged $160 billion in risky bets, stunned Wall Street, leaving institutions like Credit Suisse and Nomura Holdings reeling from billions in damages.
Prosecutors had sought a 21-year sentence and $12.35 billion in forfeitures and restitution, describing the case as a “national calamity.” However, Judge Hellerstein postponed a decision on financial penalties. Hwang’s lawyer argued for leniency, emphasizing his Christian faith and his Grace and Mercy Foundation, which has donated over $600 million to social causes since 2006. Hwang expressed remorse during the hearing, stating his desire to serve as much as possible.
Archegos’ downfall stemmed from Hwang’s aggressive borrowing and concentrated bets on media and tech stocks like ViacomCBS (now Paramount Global), which plummeted under margin calls. The debacle wiped out over $100 billion in market value. Hwang’s co-defendant, former CFO Patrick Halligan, convicted on related charges, will be sentenced in January. Both have maintained their innocence and plan to appeal.
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