Bill Hwang, the founder of Archegos Capital Management, has been recommended by U.S. prosecutors to receive a 21-year prison sentence following his conviction on charges of fraud and market manipulation. This recommendation comes just before Hwang's sentencing later this month, as his actions led to the significant collapse of Archegos in 2021.
According to documents submitted to a U.S. District Judge, prosecutors argue that Hwang, aged 60, was responsible for one of the largest securities fraud schemes in history, resulting in billions of dollars in losses. The court is scheduled to pass judgment on November 20.
Hwang was found guilty by a jury in July of charges related to fraud and other crimes, having been accused of market manipulation leading up to the implosion of Archegos. The collapse of the firm sent shockwaves through Wall Street, prompting regulatory scrutiny across three continents. Major global banks faced losses approaching $10 billion, with notable impacts including $5.5 billion from Credit Suisse (now UBS Group) and $2.9 billion from Nomura Holdings, alongside approximately $100 billion in shareholder losses worldwide.
