Bill Hwang sentenced to 18 years for Archegos collapse

Archegos Capital Management founder Bill Hwang has been sentenced to 18 years in prison for orchestrating one of Wall Street's most significant financial collapses, which wiped out $100 billion in market value. The sentencing, handed down by U.S. District Judge Alvin Hellerstein, followed Hwang’s conviction in July on 10 counts of securities fraud, wire fraud, conspiracy, racketeering, and market manipulation.

Hwang, whose firm collapsed in 2021 after leveraging billions in borrowed money to place high-risk stock bets, expressed remorse during the hearing. "I feel deep pain for all of Archegos employees, the banks, and the people who suffered," he said.

Archegos operated as a family office, avoiding strict regulatory scrutiny while amassing massive exposure to a select group of stocks. The firm’s sudden implosion caused significant losses for several major banks, including Morgan Stanley, UBS, Credit Suisse, and Nomura. Credit Suisse, which suffered a $5 billion hit, later faced further financial turmoil, culminating in its acquisition by UBS in 2023.

Prosecutors emphasized the severity of Hwang’s actions, describing the fraud as "pervasive and deliberate." They highlighted his previous civil settlement for insider trading involving his former hedge fund, Tiger Asia Management, which resulted in a $44 million fine.

While Hwang's defense argued that he was one of the biggest victims of Archegos’s collapse, Judge Hellerstein rejected the notion, labeling the request for no prison time “ridiculous.” He noted the paradox of Hwang’s charitable reputation alongside his “dreadful crime,” calling the sentence a reflection of justice and a deterrent for others.

Hwang, who lost $8 billion during Archegos's collapse, intends to appeal the ruling. However, prosecutors underscored the impact of his actions, with one stating, "This was not a one-off—it was systemic fraud."

The sentencing, described as one of Wall Street's stiffest in recent years, underscores the consequences of unchecked financial manipulation in global markets.