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The Daily

Court Agrees That 'Flash Crash' Trader Can Be Extradited to U.S.

Chris Gaetano
Published Date:
Mar 24, 2016
800px-Flash_CrashA British court has ruled that Navinder Singh Sarao, a trader accused of being partially responsible for the 2010 Flash Crash can be extradited to the U.S. to face charges, according to The Financial Times. U.S. prosecutors said he contributed to market imbalances that eventually led to a freak computer glitch that made the Dow lose almost 1,000 points, then regain most of it in a half hour. Sarao is accused of "spoofing," a technique where a trader rapidly makes, then cancels, orders to manipulate their price. Prosecutors said that Sarao used this technique to make $40 million over four years, including $900,000 the day of the Flash Crash. The Department of Justice believes that Sarao's actions worsened an already volatile day at the market, culminating eventually in the Flash Crash. 

Sarao is planning to appeal the decision. If he were extradited to the U.S., he would race 22 charges ranging from wire fraud to commodities manipulation. Combined, they charges have a maximum sentence of 380 years.