Archegos' Bill Hwang: 21 Years in Prison for Market Manipulation

The trial of Bill Hwang, the founder of Archegos Capital Management, has concluded with a guilty verdict on multiple counts, including racketeering conspiracy, fraud, and market manipulation. The US government has recommended a 21-year prison sentence for Hwang, citing the scale of the fraud and the need for deterrence. This article explores the evidence presented during the trial, the defense's arguments, and the impact of Hwang's actions on the financial industry.

The prosecution portrayed Hwang as a greedy manipulator, using secretive and deceptive trading practices to artificially inflate stock prices and grow his portfolio. They presented evidence of Hwang's use of total return swaps, lies to banks about trading activity, and manipulation of the market to concentrate his portfolio in just a few securities. This ultimately led to a $100 billion market value collapse in days, costing shareholders $100 billion and banks $10 billion in losses.

The defense countered the prosecution's narrative by arguing that Archegos' trading was part of a long-term strategy and not a pump-and-dump scheme. They suggested that stock prices moved for reasons other than alleged manipulation. However, the prosecution's star witnesses, former Archegos employees, testified to the firm's lies to banks and the frantic final days, ultimately leading to Hwang's conviction on all counts.



The jury's deliberation process reflected their consideration of the competing narratives by weighing the evidence presented by both sides. One juror, with over three decades of Wall Street experience, initially felt on the fence but ultimately convicted Hwang for market manipulation, stating that Hwang's trading scale had a manipulative impact on stocks. The juror also expressed sympathy for Hwang's co-defendant, Patrick Halligan, suggesting he may have been dragged into Hwang's scheme.

The jury's recommendation of a 21-year prison sentence for Hwang reflects the gravity of the crime and the need for deterrence in similar cases. The sentence also acknowledges the magnitude of the losses and the impact on both individual investors and financial institutions. The US government's sentencing memo emphasized the scale of the fraud, the harm caused to investors, and the importance of deterrence.

In conclusion, the trial of Bill Hwang and the subsequent guilty verdict highlight the importance of regulatory oversight and responsible trading practices in the financial industry. The recommended 21-year prison sentence sends a strong message about the consequences of market manipulation and fraud. As the financial industry continues to evolve, it is essential to maintain a balance between innovation and responsible conduct to protect investors and preserve market integrity.