Bill Hwang, Whose Firm Archegos Collapsed in 2021, Is About to Go on Trial

Three years ago, a major investment firm experienced a sudden collapse that resulted in significant losses for Wall Street banks. The founder of the firm is now facing federal criminal charges and is set to go on trial. If convicted, he could face a lifetime in prison. The firm, which managed money primarily for the founder’s family and employees, saw its value plummet when it collapsed. The founder is accused of securities fraud, wire fraud, conspiracy, racketeering, and market manipulation. The trial also involves the former chief financial officer of the firm. It is alleged that the firm inflated stock prices by borrowing billions of dollars from banks. This strategy increased the founder’s net worth to over $35 billion at its peak. The U.S. attorney for the Southern District of New York described the scheme as historic in scope. The founder’s lawyer declined to comment on the case.