Former Billionaire, Bill Hwang Sentenced To 18 Years In Prison Over Massive Fraud

Sung Kook Bill Hwang, the founder of Archegos Capital Management, has been sentenced to 18 years in prison for a massive fraud scheme that caused billions of dollars in losses for major banks.

Bill Hwang, 60, was convicted for his role in the 2021 collapse of his company Archegos, which resulted in over $10 billion in losses for Wall Street banks.

His sentencing follows a guilty verdict for fraud and market manipulation tied to the firm’s downfall.

“The amount of losses that were caused by your conduct are larger than any other losses I have dealt with,” said U.S. District Judge Alvin Hellerstein before handing down the sentence, as reported by Reuters.

While the 18-year prison term is slightly less than the 21 years prosecutors sought, it is considered unusually long for a financial crime.

Prosecutors also pushed for a restitution order, but the judge has not yet ruled on that matter, with a continuation of the hearing set for Thursday.

Hwang was found guilty of deceiving major banks while secretly building massive, risky investments in certain companies.

When Archegos failed to meet its financial obligations, it triggered a rapid stock sell-off and led to the fund’s collapse in less than a week.

The implosion is considered one of the most significant hedge fund failures since the 2008 financial crisis.

Banks hit hardest by the collapse included Credit Suisse (now part of UBS), Japan’s Nomura, and Morgan Stanley, all of which suffered substantial losses.

Bill Hwang’s lawyers argued for leniency, citing his Christian faith, charitable contributions, and the dramatic reduction in his wealth—from an estimated $30 billion to $55 million.

However, Judge Hellerstein dismissed these pleas as “utterly ridiculous,” highlighting the scale of the fraud.

He compared Hwang to FTX founder Sam Bankman-Fried, who received a 25-year prison sentence for fraud last year, according to Bloomberg.

Bill Hwang’s lawyers have not responded to requests for comment.

Patrick Halligan, Archegos’ chief financial officer and Hwang’s co-defendant, was also convicted on three criminal charges. His sentencing is scheduled for January 27.

KanyiDaily also reported how Nigerian Business mogul, Kessington Adebutu faced a substantial decline in his fortune attributed to a recent plummet in the market value of his stake in Wema Bank.