Bill Hwang, the founder of Archegos hedge fund, has been sentenced to 18 years in prison for committing massive fraud. The severity of Hwang's crimes was emphasized by Judge Alvin Hellerstein, who delivered the sentence following a jury's conviction on ten out of eleven charges in July.

Hwang's fraudulent actions resulted in significant financial losses for various banks, including Credit Suisse and Morgan Stanley. By heavily leveraging bets on a small number of stocks, Hwang initially experienced success, increasing his personal wealth from $1.5 billion to $35 billion. However, the collapse of the fund in March 2021, triggered by failed bets and demands for additional collateral, led to billions in losses for the banks involved.

The fallout from Archegos's failure played a role in Credit Suisse's near bankruptcy in 2023, ultimately resulting in its acquisition by UBS. Prior to receiving the 18-year sentence, Hwang faced the possibility of life imprisonment.