Federal Jury Finds Investor Bill Hwang Guilty in Archegos Capital Management Case

A jury in federal court in Manhattan on Wednesday found the investor Bill Hwang guilty on charges arising from the collapse of Archegos Capital Management, resulting in approximately $10 billion in losses for major Wall Street banks. The 12-person jury deliberated for nearly two days following a two-month trial that featured testimony from 21 prosecution witnesses.

Two crucial witnesses were former employees of Archegos, a family office set up by Mr. Hwang in 2013, operating similarly to a hedge fund but with less regulatory oversight. Mr. Hwang, aged 60, faced 11 charges, including securities fraud, wire fraud, conspiracy, racketeering, and market manipulation. The jury convicted him on 10 charges and acquitted him on one count of market manipulation.

Mr. Hwang, who was present in the courtroom wearing a dark suit, could potentially face a lifetime sentence in federal prison. Damian Williams, the U.S. attorney for the Southern District of New York, was present during the reading of the verdict.

The jury also found Patrick Halligan, the former CFO of Archegos, guilty on all three counts against him, which included conspiracy, securities fraud, and wire fraud.