By Sung Kook “Bill” Hwang, the former billionaire founder of Archegos Capital Management, was sentenced Wednesday to 18 years in prison for orchestrating a market manipulation scheme that caused more than $10 billion in losses for major Wall Street banks.
U.S. District Judge Alvin Hellerstein imposed the sentence in Manhattan federal court, where a jury convicted Hwang in July on 10 criminal charges including wire fraud, securities fraud, and market manipulation. “The amount of losses that were caused by your conduct are larger than any other losses I have dealt with,” Hellerstein declared before announcing the punishment.
Federal prosecutors had sought a 21-year term and $12.35 billion in forfeiture, describing the case as “a national calamity.” The judge postponed decisions on forfeiture and restitution until Thursday’s continuation of the sentencing hearing.
The March 2021 collapse of Archegos shocked Wall Street as Hwang’s $36 billion family office imploded in less than a week. Through aggressive borrowing, Hwang had amassed $160 billion in stock market exposure, primarily in concentrated bets on media and technology companies including ViacomCBS, now Paramount Global.
During the hearing, Hellerstein drew comparisons to Sam Bankman-Fried’s recent 25-year sentence for stealing $8 billion from FTX customers. Defense attorney Dani James argued the cases differed fundamentally, stating, “Mr. Bankman-Fried was literally stealing from his customers. I don’t think that’s what’s happened here.”
Hwang, 60, established Archegos in 2013 after his previous hedge fund, Tiger Asia Management, pleaded guilty to wire fraud in an insider-trading case. A protégé of legendary investor Julian Robertson, Hwang built Archegos using total return swaps and allegedly deceived banks about his portfolio to secure aggressive lending.
The firm’s collapse triggered massive losses across Wall Street, with Credit Suisse suffering a $5.5 billion hit and Nomura Holdings also incurring substantial damages. Credit Suisse has since been acquired by UBS.
Defense lawyers had requested no prison time, citing Hwang’s Christian faith and philanthropic work through his Grace and Mercy Foundation, which has donated over $600 million since 2006 to combat homelessness, poverty, and human trafficking. Before sentencing, Hwang expressed hope that his punishment would “allow me to serve as much as I can given the circumstances.”
Patrick Halligan, Archegos’ former chief financial officer who was convicted alongside Hwang, awaits sentencing on January 27. Neither defendant testified during their two-month trial. Hwang’s attorneys note his net worth has plummeted to “at most” $55.3 million.
