Former billionaire investor Sung Kook “Bill” Hwang has been sentenced to 18 years in prison for his role in the collapse of Archegos Capital Management. The collapse of Archegos cost Wall Street banks over $10 billion, making it a national calamity.
Hwang was convicted in July on 10 criminal charges, including wire fraud, securities fraud, and market manipulation. The US Attorney’s office sought a 21-year prison term for Hwang and for him to forfeit over $12 billion and make restitution to victims.
During the sentencing hearing, prosecutor Andrew Thomas described the case as a national calamity, and Judge Alvin Hellerstein characterized the losses caused by Hwang’s conduct as the largest he has dealt with. Hellerstein did not reach a decision on whether Hwang must forfeit money or pay restitution, with the sentencing hearing set to resume.
Hwang had asked for no prison, forfeiture, or restitution, citing his low risk of committing more crimes, but the judge ultimately sentenced him to 18 years in prison. Hwang’s co-defendant, former Archegos CFO Patrick Halligan, was also convicted and is scheduled for sentencing in January.
Hwang’s downfall came when he was unable to meet margin calls, leading to the wiping out of over $100 billion in market value of his stocks. The collapse shook Wall Street and led to significant losses for banks including Credit Suisse and Nomura Holdings.
Hwang’s lawyers emphasized his Christian faith and his philanthropic work through the Grace and Mercy Foundation, which has donated at least $600 million to various causes. Hwang expressed his hope for the sentence to allow him to serve as much as he can given the circumstances.
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