Archegos Capital Management founder Bill Hwang and his chief financial officer were charged with federal criminal violations resulting from the firm’s $5.5 billion collapse last year after the market turned against its positions.
Federal authorities said Hwang used Archegos as an 「instrument of market manipulation and fraud,」 causing billions of dollars in losses for banks, financial market investors and its own employees.
The alleged fraud is claimed to have artificially inflated Archegos’s portfolio from $1.5 billion to $35 billion in one year, according to a statement from Manhattan U.S. Attorney Damian Williams.