Archegos Capital Founder Convicted of Market Manipulation

Sung Kook 'Bill' Hwang, founder of Archegos Capital Management, has been convicted of market manipulation in relation to the 2021 collapse of his $36 billion firm. Prosecutors accused Hwang and his deputy, Patrick Halligan, of deceitfully inflating stock prices and causing significant losses to banks and shareholders.


Devdiscourse News Desk | Updated: 11-07-2024 02:10 IST | Created: 11-07-2024 02:10 IST
Archegos Capital Founder Convicted of Market Manipulation

Sung Kook 'Bill' Hwang, the founder of Archegos Capital Management, was convicted Wednesday by a Manhattan federal jury for market manipulation related to the catastrophic 2021 collapse of his $36 billion private investment firm. Hwang, alongside his deputy Patrick Halligan, had faced charges for deceitfully inflating stock prices by lying to banks in order to secure billions in funding.

The collapse of Archegos reverberated across Wall Street, raising regulatory alarms globally. Hwang, 60, was found guilty on multiple counts of fraud, racketeering conspiracy, and market manipulation, while Halligan, 47, was convicted of racketeering conspiracy and fraud. Both men potentially face decades in prison.

Prosecutors highlighted the broader impact of the Archegos collapse, citing more than $100 billion in shareholder losses and $10 billion in bank damages. This case underscores the U.S. Justice Department's commitment to penalize those who destabilize and defraud financial markets.

(With inputs from agencies.)

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