Jury convicts Bill Hwang and CFO Patrick Halligan on multiple charges related to 2021 market meltdown.
Archegos' actions cost major banks and investors nearly $100 billion in shareholder value.
A federal
jury in Manhattan has found Sung Kook "Bill" Hwang, founder of
Archegos Capital Management, guilty of fraud and market manipulation in
connection with the spectacular collapse of his $36 billion investment firm in
2021. The verdict, delivered after a day and a half of deliberations, marks the
culmination of a closely watched trial that sent shockwaves through Wall
Street.
Jury Finds Hwang Guilty of
Market Manipulation in Archegos Collapse
Hwang was convicted
on 10 out of 11 criminal counts, including racketeering conspiracy, fraud,
and market manipulation. His co-defendant, Patrick Halligan, who served as
Archegos' chief financial officer, was found guilty on all three counts he
faced.
Prosecutors
alleged that Hwang and Halligan orchestrated a scheme to deceive banks and
artificially inflate stock prices, leading to Archegos' implosion and billions
in losses for global financial institutions and shareholders.
According
to the US attorney Damian Williams, this verdict sends a clear message that
those “who think they can cheat the system” will be held accountable. The
defendants' actions not only harmed banks and market participants, but also
ordinary investors and Archegos employees.
Potential 20 Years Behind
Bars
During the
trial, which began in May, the prosecution presented evidence that Hwang
secretly amassed enormous positions in various companies through complex
derivative instruments, while misrepresenting the true extent of Archegos'
exposure to lenders. When stock prices began to fall in March 2021, the firm
was unable to meet margin calls, triggering a cascade of forced liquidations
that wiped out an estimated $100 billion in shareholder value.
Defense
attorneys argued that Hwang's trading strategies, while aggressive, were legal
and that prosecutors had overreached in their charges. However, the jury was
ultimately convinced by the government's case, which included testimony from
former Archegos executives who had previously pleaded guilty to related
charges.
US District
Judge Alvin Hellerstein has set sentencing for October 28. Both Hwang and
Halligan face potential maximum sentences of 20 years in prison for each count,
although actual sentences are likely to be lower based on various factors.
The
conviction marks a second fall from grace for Hwang, who previously faced
regulatory issues with his hedge fund, Tiger Asia Management, in 2012. That
case resulted in Hwang pleading guilty to wire fraud and paying $44 million to
settle insider trading charges.
Negative Impact on the Broader Market
The
collapse of Archegos resulted in significant losses for several major banks,
including Credit Suisse and Nomura Holdings, which reported losses of $5.5
billion and
$2.9 billion, respectively. According to analysts, the losses incurred by
the Swiss bank due to the collapse of the investment firm were one of several
major factors ultimately leading
to the eventual bankruptcy of Credit Suisse, which UBS ultimately took
over.
In
addition, Morgan Stanley experienced around $911 million in losses from its
exposure to Archegos, though it managed to absorb the impact without severe
long-term consequences. At the same time, UBS suffered losses of about $861
million related to Archegos, prompting a review of its risk management
strategies.
A federal
jury in Manhattan has found Sung Kook "Bill" Hwang, founder of
Archegos Capital Management, guilty of fraud and market manipulation in
connection with the spectacular collapse of his $36 billion investment firm in
2021. The verdict, delivered after a day and a half of deliberations, marks the
culmination of a closely watched trial that sent shockwaves through Wall
Street.
Jury Finds Hwang Guilty of
Market Manipulation in Archegos Collapse
Hwang was convicted
on 10 out of 11 criminal counts, including racketeering conspiracy, fraud,
and market manipulation. His co-defendant, Patrick Halligan, who served as
Archegos' chief financial officer, was found guilty on all three counts he
faced.
Prosecutors
alleged that Hwang and Halligan orchestrated a scheme to deceive banks and
artificially inflate stock prices, leading to Archegos' implosion and billions
in losses for global financial institutions and shareholders.
According
to the US attorney Damian Williams, this verdict sends a clear message that
those “who think they can cheat the system” will be held accountable. The
defendants' actions not only harmed banks and market participants, but also
ordinary investors and Archegos employees.
Potential 20 Years Behind
Bars
During the
trial, which began in May, the prosecution presented evidence that Hwang
secretly amassed enormous positions in various companies through complex
derivative instruments, while misrepresenting the true extent of Archegos'
exposure to lenders. When stock prices began to fall in March 2021, the firm
was unable to meet margin calls, triggering a cascade of forced liquidations
that wiped out an estimated $100 billion in shareholder value.
Defense
attorneys argued that Hwang's trading strategies, while aggressive, were legal
and that prosecutors had overreached in their charges. However, the jury was
ultimately convinced by the government's case, which included testimony from
former Archegos executives who had previously pleaded guilty to related
charges.
US District
Judge Alvin Hellerstein has set sentencing for October 28. Both Hwang and
Halligan face potential maximum sentences of 20 years in prison for each count,
although actual sentences are likely to be lower based on various factors.
The
conviction marks a second fall from grace for Hwang, who previously faced
regulatory issues with his hedge fund, Tiger Asia Management, in 2012. That
case resulted in Hwang pleading guilty to wire fraud and paying $44 million to
settle insider trading charges.
Negative Impact on the Broader Market
The
collapse of Archegos resulted in significant losses for several major banks,
including Credit Suisse and Nomura Holdings, which reported losses of $5.5
billion and
$2.9 billion, respectively. According to analysts, the losses incurred by
the Swiss bank due to the collapse of the investment firm were one of several
major factors ultimately leading
to the eventual bankruptcy of Credit Suisse, which UBS ultimately took
over.
In
addition, Morgan Stanley experienced around $911 million in losses from its
exposure to Archegos, though it managed to absorb the impact without severe
long-term consequences. At the same time, UBS suffered losses of about $861
million related to Archegos, prompting a review of its risk management
strategies.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Week In Review: Chaos at BDSwiss , IronFX Founder's Prop Firm, US FX Deposits, and More
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
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Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
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Ready to Scale? Regtech in Australia, A Global View | FMPS:24
Ready to Scale? Regtech in Australia, A Global View | FMPS:24
In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Resilience in Trading: From Third Class To World Class | FMPS:24
Resilience in Trading: From Third Class To World Class | FMPS:24
Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
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Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 Stay updated with the latest in finance and trading!
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IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
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For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
📣 Stay updated with the latest in finance and trading!
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