Archegos founder Bill Hwang had previously been found guilty of fraud and market manipulation. He was accused of misleading banks by inflating the value of Archegos’s investments through various deceptive tactics. The imposed prison sentence, however, is less than the 21-year term initially sought by the U.S. Department of Justice. Prosecutors also demanded that Hwang pay over $12 billion in damages to victims. “This is one of those rare cases that can truly be described as a national disaster,” said prosecutor Andrew Thomas in court.
Prosecutors argued that a “significant sentence” was necessary to deter Hwang and to send a clear message to even the most arrogant investors that grandiose schemes will be met with severe consequences. The collapse of Archegos in 2021 resulted in billions of dollars in losses, impacting various financial institutions, including the Swiss bank Credit Suisse, which later required a bailout.
Last week, Hwang’s attorneys requested that no prison sentence be imposed. They argued that the substantial financial losses experienced in the sector were not solely due to Archegos. They further claimed that incarceration would be inappropriate, given Hwang’s age and health conditions, noting that he suffers from cardiovascular disease. Around 100 others have also appealed for leniency on Hwang’s behalf.