Archegos founder sentenced to 18 years in prison

Former Wall Street investor, Sung Kook "Bill" Hwang, has been sentenced to 18 years successful situation successful a monolithic fraud lawsuit that outgo banks billions of dollars.

The condemnation comes aft Hwang was recovered blameworthy of fraud and marketplace manipulation successful a lawsuit linked to the nonaccomplishment of his concern money Archegos Capital Management successful 2021.

"The magnitude of losses that were caused by your behaviour are larger than immoderate different losses I person dealt with," US District Judge Alvin Hellerstein said earlier announcing the sentence, successful quotes cited by Reuters quality agency.

The situation word was somewhat shorter than the 21-year situation condemnation sought by prosecutors, but is inactive unusually agelong for a white-collar crime.

Prosecutors had besides been seeking a restitution outgo but the justice has not announced his determination connected the matter. The sentencing proceeding is acceptable to resume connected Thursday.

Hwang was recovered blameworthy of lying to large concern banks arsenic helium secretly amassed ample bets connected respective companies.

When Archegos was incapable to repay its lenders, it prompted a wide sell-off of stocks and the money rapidly collapsed successful little than a week, making it 1 of the largest hedge money collapses since the 2008 fiscal crisis.

Among the large banks that suffered immense losses arsenic a effect of Archegos' implosion were Credit Suisse, which has since go a portion of UBS, Japan's Nomura and Morgan Stanley.

Hwang's lawyers had called for him not to beryllium punished, citing his Christian religion and his donations to charity.

They besides said his wealth, which astatine 1 constituent was valued astatine an estimated $30bn (£23.7bn), had fallen to an estimated $55m.

The justice called the requests for leniency "utterly ridiculous" owed to the wealth progressive and compared Hwang to the disgraced laminitis of FTX, Sam Bankman-Fried, who received a 25-year condemnation for fraud past year, according to Bloomberg.

Hwang's lawyers did not instantly respond to a petition for remark from the BBC.

Hwang's lawman astatine Archegos and co-defendant, Patrick Halligan, who was besides recovered blameworthy connected 3 transgression charges astatine the aforesaid trial, is acceptable to beryllium sentenced astatine a proceeding scheduled for 27 January.