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Indian-origin 'flash crash' trader loses extradition case

Press Trust of India  |  London 

A today ordered extradition to the US of an Indian-origin futures trader arrested for his alleged role in the 2010 "flash crash" which wiped nearly USD 1 trillion off the value of US shares in minutes.

London-based Navinder Singh Sarao, 37, must now be extradited to the US within 28 days to face charges that he contributed to the May 2010 crash, when the share index in New York briefly fell by more than 1,000 points.

At the High Court, Lord Justice Gross said it was "clear" the must turn down his application against extradition.

Sarao denies all 22 charges brought against him by US authorities. He faces a maximum sentence of 380 years.

American prosecutors allege Sarao made millions of dollars through online tradesfrom his parents' west home which amounted tomarket manipulation and caused the 1,000-point fall on the index on May 6, 2010.

The 22 charges he faces include and "spoofing" - the practice of buying or selling with the intent to cancel the transaction before execution.

He has previously told the that he was simply "being good at my job".

The US justice department claims Sarao and his company NavSaraoFutures Limited made 878,000 dollars of profit from the flash crash and a total of 26 million pounds illegally over five years.

He was arrested by British police on a US warrant in April last year and has been indicted by a US federal grand jury on 22 criminal counts, including wire fraud, commodities fraud, commodity price manipulation and attempted price manipulation.

The former bank worker and Brunel University student, who lives and worked out of his parents' home in Hounslow near Heathrow airport, is accused of using an automated trading program to "spoof" markets.

During the course of hearings last year, it emerged that he suffers from Asperger's syndrome, a form of autism.

The so-called "flashcrash" saw the industrial average briefly plunge more than 1,000 points on May 6, 2010, temporarily wiping out nearly one trillion dollars in market value.

Saraohas already spent four months in prison last year after failing to meet five-million-pound bail terms because his assets had been frozen.

He was freed in September last year after US authorities agreed he could be released on bail of 50,000 pounds.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, October 14 2016. 19:23 IST