Archegos collapsed in March 2021, leaving banks with more than $10b in losses and sparking calls for more regulatory oversight. More than $100b in stock market value vanished in a matter of days. The U.S. attorney for the Southern District of New York described the purported scheme as historic in scope, alleging that defendants and their co-conspirators lied to banks to obtain billions of dollars in loans, which they then used to inflate the stock price of publicly traded companies.
| less than a minute read
Archegos founder Bill Hwang, former CFO charged with securities fraud
“The lies fed the inflation, and the inflation fed more lies,” Mr. Williams said at a news conference. “Last year, the music stopped. The bubble burst. The prices dropped. And when they did, billions of dollars evaporated overnight.”
