Archegos’ Bill Hwang requests pardon for massive fraud that cost banks $10 billion

Jan 21 (Reuters) – Bill Hwang, the founder of Archegos Capital Management, has sought a presidential pardon for his conviction in the collapse of his fund that cost Wall Street banks more than $10 billion.

The former billionaire investor, who was sentenced to 18 years in prison in 2024, applied last year for a pardon after completion of sentence with the U.S. Justice Department, according to the agency’s website.

Archegos, a family office that once managed $36 billion, collapsed in 2021 when Hwang failed to meet margin calls on bank loans he had obtained to make large bets on media and technology stocks.

A jury in 2024 convicted Hwang on multiple criminal charges including wire fraud, securities fraud and market manipulation after prosecutors accused him of lying to banks about Archegos’ portfolio so he could borrow money aggressively.

The Justice Department’s Office of the Pardon Attorney makes recommendations to the President on pardon applications, which can take months or years to be processed, according to the agency.

A White House official did not comment on the clemency request but said the President is the final decider on all pardons or commutations.

The Justice Department did not immediately respond to Reuters’ request for a comment.

Since returning to office last year, President Donald Trump has granted a flurry of pardons, many of which were for white-collar criminals and political allies.

(Reporting by Arasu Kannagi Basil in Bengaluru; additional reporting by Prakhar Srivastava; Editing by Shreya Biswas)