“The notion that he would commit a crime in the future, it’s just not so,” James said.
She stressed his charitable work and humble lifestyle, noting that he still lives in a modest New Jersey home. But the judge expressed scepticism about Hwang’s claim of modesty, noting his “new apartment in Hudson Yards”.
Several banks suffered losses, including Credit Suisse, which lost $US5.5 billion.Credit: Bloomberg
Hwang spoke only briefly, saying he felt “deep pain” about what happened at Archegos. After thanking his wife and supporters who wrote letters seeking leniency, he asked the judge to impose a sentence that would allow him to continue to serve society.
Bankman-Fried denies wrongdoing and is appealing his conviction.
Hwang, 60, was a protege of late hedge-fund billionaire Julian Robertson.
He set up Archegos in New York as a family office in 2013, the year after his former hedge fund Tiger Asia Management pleaded guilty to wire fraud in an insider-trading case.
‘It stands among a rare class of cases that truly could be described as a national calamity.’
Prosecutor Andrew Thomas
Prosecutors accused Hwang of lying to banks about Archegos’ portfolio so he could borrow money aggressively and make concentrated bets on media and technology stocks such as ViacomCBS, now called Paramount Global.
While Archegos eventually managed $US36 billion, Hwang’s borrowing helped him amass $US160 billion of exposure to stocks.
His downfall occurred when Hwang was unable to meet margin calls as prices of some of his favourite stocks began falling and various banks unloaded stocks that had backed his so-called total return swaps.
More than $US100 billion ($154 billion) of market value in Hwang’s stocks was wiped out. Several banks suffered losses, including Credit Suisse, which lost $US5.5 billion, and Nomura Holdings. Credit Suisse is now part of UBS.
Loading
Hwang’s lawyers’ request for no punishment also cited Hwang’s Christian faith and his nonprofit Grace and Mercy Foundation, which has since 2006 donated at least $US600 million to combat homelessness, poverty and human trafficking, among other causes.
Hwang’s fortune was once estimated to be upwards of $US10 billion.
Hwang’s co-defendant, former Archegos chief financial officer Patrick Halligan, was convicted at the same trial on three criminal charges. His sentencing is scheduled for January 27. Both chose not to testify at their two-month trial.
Reuters, Bloomberg
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.