According to BlockBeats, on November 16, US prosecutors said that Bil Hwang, the convicted founder of Archegos Capital Management, should be sentenced to 21 years in prison.
It is reported that since March 2021, Archegos has been forced to sell off a large number of Chinese concept 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 the 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 released a report saying that the total losses of the 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 a Korean who worked as a stock analyst at the Tiger Fund founded by Julian Robertson. In 2001, Bill Hwang established Tiger Asia Fund. In 2012, he was investigated by the US Securities and Exchange Commission (SEC) for insider trading, and the Hong Kong Securities and Futures Commission (SFC) also ordered him to be banned from trading in the Hong Kong market.