Bill Hwang, the founder of Archegos Capital Management, has been sentenced to 18 years in prison after a financial scandal.
Hwang's investment strategy involved making large bets on a few stocks using borrowed funds, which initially resulted in significant returns. However, in March 2021, some of Hwang's bets failed, leading to a demand for more collateral that Archegos could not meet. This caused the fund to collapse, resulting in substantial losses for major financial institutions such as Credit Suisse and Morgan Stanley.
The case highlights the risks of high-leverage trading and the potential consequences for investors and banks involved in speculative activities.