The Rise and Fall of Bill Hwang: A Billionaire's Downfall in the Financial World

Bill Hwang, a former billionaire investor, faces a potential 21-year prison sentence following the collapse of Archegos Capital Management. Convicted of multiple charges including wire and securities fraud, Hwang's case highlights significant financial loss for banks. He seeks reduced sentencing due to his personal circumstances and philanthropic work.

Bill Hwang, once a billionaire investor, is facing a lengthy prison sentence following the dramatic collapse of Archegos Capital Management, which cost Wall Street banks over $10 billion. On Wednesday, U.S. District Judge Alvin Hellerstein will sentence Hwang, who was convicted in July on charges such as wire and securities fraud.

The prosecution is pushing for a 21-year sentence, a $12.35 billion forfeiture, and restitution for victims. Hwang, however, contends that he should not serve prison time and seeks to remain free on bail while appealing the conviction, citing no flight risk or threat to the community.

The downfall of Archegos in March 2021 marked a dramatic turn for Hwang, a once-revered protege of hedge fund titan Julian Robertson. Set up in 2013, Archegos crumbled under financial strains when its strategies in media and tech stocks failed, leading to massive stock sell-offs by banks. Hwang's case underscores notable financial repercussions, including a loss of $5.5 billion by Credit Suisse, now part of UBS.

(With inputs from agencies.)