According to BlockBeats, on November 16, U.S. prosecutors said that the convicted founder of Archegos Capital Management, Bil Hwang, should be sentenced to 21 years in prison. It is reported that since March 2021, Archegos has been forced to sell a large number of Chinese stocks in its holdings, including Baidu, Tencent Music and Vipshop, due to the use of a large number of highly leveraged derivatives to evade reporting obligations, and encountered unfavorable market conditions. Not only did Archegos lose $10 billion in this forced liquidation, but the market value of the stocks sold also evaporated by $33 billion. The investment banks that traded with Archegos also suffered heavy losses. JPMorgan Chase issued a report saying that the total losses of six investment banks involved, including Goldman Sachs, Morgan Stanley, Wells Fargo, UBS, Credit Suisse and Nomura Securities, reached $5 billion to $10 billion. Public information shows that Bill Hwang is Korean and once worked as a stock analyst at the Tiger Fund founded by Julian Robertson. In 2001, Bill Hwang founded Tiger Asia Fund. In 2012, it was investigated by the U.S. Securities and Exchange Commission (SEC) for insider trading. At the same time, the Hong Kong Securities and Futures Commission (SFC) also ordered it to be banned from trading in the Hong Kong market.

#SEC