Downfall of a Financial Empire: Bill Hwang's Sentencing

Former financier Bill Hwang was sentenced to 18 years for crimes associated with the collapse of Archegos Capital, which resulted in over $10 billion in losses for Wall Street banks. A notable figure in hedge funds, Hwang's actions have been labeled a national calamity, leading to severe financial repercussions.

In a dramatic conclusion to a high-profile financial scandal, ex-billionaire investor Sung Kook "Bill" Hwang was handed an 18-year prison sentence on Wednesday, following the collapse of his firm, Archegos Capital Management. This collapse caused Wall Street banks to incur losses exceeding $10 billion.

Sentenced by U.S. District Judge Alvin Hellerstein in Manhattan, Hwang was found guilty of 10 criminal charges, including wire fraud and market manipulation. His case, which was tried in July, is considered a major calamity, reflecting the severity of white-collar crime today.

Archegos, initially a family office, was established by Hwang post a previous hedge fund fraud case. With reckless borrowing and risky investments in media and tech stocks, Hwang accumulated massive exposure, leading to an eventual market crash that obliterated over $100 billion in value.

(With inputs from agencies.)