By Jody Godoy
In a high-stakes trial in Manhattan federal court, jurors are deliberating on the fate of Sung Kook "Bill" Hwang, the founder of Archegos Capital Management. Prosecutors have accused Hwang of manipulating stock prices before the collapse of his $36 billion private investment firm in 2021.
During closing arguments, Hwang's lawyer defended his client's trading methods as aggressive but legal, while prosecutors painted a picture of unlawful behavior, alleging that Hwang and his deputy, Patrick Halligan, inflated stock prices and misled banks about Archegos' holdings.
If convicted, Hwang and Halligan face up to 20 years in prison on each charge. The trial, which began in May, focuses on the fallout from Archegos' collapse, which caused billions in losses for global banks and shareholders.
Prosecutors claim that Hwang secretly acquired large stakes in companies through derivative positions, leading to inflated stock prices. When the market turned in March 2021, banks demanded additional deposits from Archegos, triggering a chain reaction that wiped out billions in value.
Overall, the case highlights the risks of unchecked market manipulation and the potential consequences for both investors and financial institutions. Stay tuned for the jury's verdict and its implications for the financial world.