Archegos Capital Implosion: Lies, Manipulation, and a $100 Billion Fraud

The 2021 collapse of Bill Hwang's Archegos Capital Management is under scrutiny in a Manhattan federal court. Prosecutors argue that lies and manipulation led to a $100 billion fraud affecting banks and shareholders. Hwang and his deputy face serious charges, while former employees testify for the prosecution.

The 2021 collapse of Sung Kook "Bill" Hwang's Archegos Capital Management was driven by "lies and manipulation," according to a federal prosecutor's statement to a Manhattan jury on Monday. The jury heard closing arguments from both the prosecution and defense in the high-profile criminal trial of Hwang and his deputy Patrick Halligan.

The implosion of Hwang's family office occurred in March 2021, resulting in $10 billion in losses for global banks and over $100 billion in shareholder losses. Hwang's lawyer, Barry Berke, claimed aggressive but legal trading tactics led to the downfall, not criminal acts.

Assistant U.S. Attorney Andrew Thomas accused Hwang of manipulating stocks and deceiving banks to gain billions in borrowings, leading to a massive fraud. Hwang, who has pleaded not guilty, faces multiple charges of racketeering conspiracy, fraud, and market manipulation, with potential sentences up to 20 years.

(With inputs from agencies.)