#BabyMarvinf9c7火星狗 Shocking the world! A one-day loss of billions, the protagonist of the 'Century's Great Liquidation' will be sentenced Securities Times 2024/11/18 00:29 The protagonist of the 'Century's Great Liquidation' case, Archegos Capital founder Bill Hwang, will be sentenced on November 20.
The case's prosecutors claimed that Bill Hwang should be sentenced to 21 years. A loss of billions leading to a 21-year sentence? According to documents submitted to the court by the Manhattan U.S. Attorney's Office on November 15, the founder of Archegos Capital, Bill Hwang, was found guilty of manipulating the securities market and other charges, which not only caused his company to lose $36 billion (approximately 260 billion yuan) but also resulted in losses of over $10 billion (approximately 72 billion yuan) for the company's lenders.
He should be sentenced to 21 years in prison, while his $12.35 billion in assets should be confiscated, and he should pay restitution to the victims. Prosecutors said, "Bill Hwang used his personal hedge fund to carry out a fraud that altered the U.S. stock market and caused his trading partners to suffer losses of billions of dollars.
Even after being ordered to stop fraudulent activities, he continued to carry out fraud.
Even now, he feels no remorse." The prosecutor added that a significant ruling would 'send a signal even to the most arrogant investors that their plans will be severely punished.'
For related criminal cases in the United States, a 21-year sentence is relatively rare. Previously, FTX founder Sam Bankman was sentenced to 25 years in prison for stealing billions from clients.
Bill Hwang's lawyers did not respond to the prosecutors' statements, and he is expected to appeal this ruling. In July of this year, a New York City jury found 10 of the 11 charges against Bill Hwang to be valid, but did not issue a final sentence in court.
Bill Hwang's lawyers argued in defense that the prosecutors failed to prove that the alleged lies caused losses to the bank. They stated that Hwang's age, cardiovascular disease, charitable work, and low recidivism risk meant he should not be imprisoned. "The largest single-day loss in history" review of the Bill Hwang family's hedge fund company.
Archegos had made huge bets on a few stocks using loans obtained from banks, including ViacomCBS Group and several Chinese concept stocks, with assets exceeding $160 billion.
In March 2021, Viacom's stock price plummeted rapidly. The heavily invested Archegos fund suffered significant losses, and the company subsequently received a margin call from its brokers.
But due to the inability to provide sufficient margin, other major brokers had to forcibly liquidate all holdings under Bill Hwang.
According to incomplete statistics, Archegos once sold stocks worth a total of $19 billion in a single day, resulting in a market value evaporation of $33 billion for the related stocks. In March 2021, Archegos declared bankruptcy, triggering shockwaves throughout the market and causing $10 billion in losses for Credit Suisse, Nomura, Morgan Stanley, and other large financial institutions.
Among them, Credit Suisse was the most severely affected — losing about $5.5 billion. This loss brought the bank to the brink of bankruptcy before it was acquired by its competitor UBS Group in 2023.
Patrick Hargreaves, the former Chief Financial Officer of Archegos who was tried in the same case, was found guilty of conspiracy, securities fraud, and wire fraud. His sentencing is scheduled for January 27 next year.
