Ex-Billionaire Bill Hwang Gets 18 Years for Archegos Collapse That Rocked Wall Street

Bill Hwang, the founder of Archegos Capital Management, has been sentenced to 18 years in prison for orchestrating one of the largest financial frauds in U.S. history. The collapse of Archegos in 2021 resulted in over $10 billion in losses for major Wall Street banks and wiped out more than $100 billion in market value.

Hwang, 60, was convicted in July on 10 charges, including wire fraud and market manipulation, for misleading banks to secure aggressive borrowing and making high-risk stock bets. At its peak, Archegos managed $36 billion but leveraged this to amass $160 billion in exposure, creating a fragile financial structure that unraveled when key stocks dropped in value.

U.S. District Judge Alvin Hellerstein, citing the unprecedented scale of the losses, handed down the sentence in Manhattan federal court. Prosecutors had sought a 21-year term and $12.35 billion in forfeitures, calling the case a “national calamity.”

Hwang’s defense argued for no prison time, citing his Christian faith, philanthropic work, and low likelihood of reoffending. Before sentencing, Hwang expressed remorse and emphasized his hope to contribute to society despite his circumstances.

The court has yet to decide on restitution or forfeiture, with the hearing set to continue. Hwang’s co-defendant, Patrick Halligan, Archegos’ former CFO, will be sentenced in January.