 A trader who operated from his parents' home in London has pleaded guilty in the US to helping trigger a 2010 Wall Street "flash crash".
Navinder Sarao, 37, pleaded guilty to wire fraud and spoofing. Sarao, from Hounslow, who was shackled in the Chicago courtroom, was told he faces up to 30 years in prison after admitting the charges in a plea deal. The crash on 6 May 2010 wiped nearly $1tn off the value of US shares. Sarao, who traded futures on the Chicago Mercantile Exchange from west London, was sent to the US to face federal charges after last month losing a legal challenge against his extradition. US authorities say he manipulated the market by "spoofing" over a five-year period, contributing to market instability that led to a brief 1,000-point fall on the Dow Jones index in New York. Spoofing is the practice of placing large orders before cancelling or changing them, allowing traders to buy or sell at a profit. Navinder Sarao: Who is the 'flash crash' trader? Sarao agreed to pay the US government $12.8m (£10.3m), the amount prosecutors said he earned from his illegal trading. He will be released on a $750,000 bond and will be allowed to return to the UK pending sentencing in the US, judge Virginia Kendall said. Sarao's family members offered their homes to secure his release, and the judge called them in open court to confirm they understood the terms of the agreement. Sarao had faced 22 charges carrying sentences totalling a maximum if 380 years. |
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