A federal court jury in Manhattan has reached a verdict in the case involving investor Bill Hwang and the collapse of Archegos Capital Management. The jury found Hwang guilty on charges related to the incident, which resulted in approximately $10 billion in losses for major Wall Street banks.
The 12 members of the jury deliberated for almost two days following a two-month trial that included testimony from 21 prosecution witnesses. Notably, former employees of Archegos provided key insights during the trial. Archegos, established by Hwang in 2013, operated as a family office with trading activities resembling those of a hedge fund but with limited regulatory oversight.
Hwang, aged 60, faced 11 charges including securities fraud, wire fraud, conspiracy, racketeering, and market manipulation. The jury convicted him on 10 of these charges, while finding him not guilty on one count of market manipulation. The guilty verdicts carry severe penalties, potentially leading to a lengthy federal prison sentence for Hwang.
U.S. Attorney Damian Williams, from the Southern District of New York, was present in the courtroom during the verdict announcement. Additionally, Patrick Halligan, the former CFO of Archegos, was found guilty on all three counts against him: conspiracy, securities fraud, and wire fraud.
