Archegos Collapse: Lies, Manipulation, and a $100 Billion Implosion

The 2021 collapse of Archegos Capital Management, led by Bill Hwang, has been attributed to manipulative practices and deceit. The trial of Hwang and his deputy, Patrick Halligan, involves substantial financial losses for banks and shareholders. Jury deliberations are set to begin with both defendants pleading not guilty.

The 2021 collapse of Sung Kook "Bill" Hwang's Archegos Capital Management was driven by "lies and manipulation," a federal prosecutor said at Hwang's criminal trial in Manhattan.

The trial focuses on the downfall of Archegos, which resulted in $10 billion in bank losses and over $100 billion in shareholder losses. Prosecutors accuse Hwang of utilizing aggressive trading techniques, deception, and manipulating stock values. Hwang and his deputy Patrick Halligan, who face multiple charges, have pleaded not guilty.

Federal prosecutors allege that Hwang employed fraudulent tactics to inflate stock prices, ensnaring nearly a dozen stocks and major financial institutions in a $100 billion fraud. If convicted, Hwang and Halligan could face up to 20 years in prison for each charge.

(With inputs from agencies.)