CS: According to the media, Archegos founder sentenced to 18 years in prison

Downfall of Credit Suisse

Media report: Archegos founder sentenced to 18 years in prison

The South Korean founder of the collapsed US hedge fund, who is also partly to blame for the collapse of CS, faces an even greater punishment.

Published today at 9:12 am

Bill Hwang, founder of Archegos Capital Management, appears in court in New York on November 20th.

Photo: Julia Demaree Nikhinson (Keystone)

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The founder of the collapsed US hedge fund Archegos, Bill Hwang, was sentenced to 18 years in prison on Wednesday for massive fraud, according to US media reports. “The punishment must reflect the seriousness of the crime,” the New York Times quoted Judge Alvin Hellerstein as saying. A New York jury found South Korean-born Hwang in July found guilty on ten of eleven countsHe faced life imprisonment.

Hwang caused numerous banks to lose billions. His fund bet enormous sums on just a few stocks; Most of the money was borrowed. The plan initially worked, and the fund multiplied in size in just one year. Hwang’s personal wealth rose from $1.5 billion to $35 billion.

However, when some of the bets went wrong and traders demanded more security, Archegos was no longer able to inject more money and the fund collapsed in March 2021. This caused the banks – including institutions such as Credit Suisse and Morgan Stanley – billions in losses. At CS, this led to its near-bankruptcy in 2023 and its takeover by UBS.

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