London: The extradition case involving a London-based Indian-origin lone trader accused of triggering the Wall Street "flash crash" over five years ago opened in London on Thursday.
Navinder Singh Sarao appeared at Westminster Magistrates' Court for a two-day hearing expected to last until Friday to decide if he can be extradited to the US.
American prosecutors allege the 37-year-old made millions of dollars through online trades from his parents' west London home, which amounted to market manipulation and caused a 1,000-point fall on the US Dow Jones index on May 6, 2010.
The charges include "spoofing" - the practice of buying or selling with the intent to cancel the transaction before execution.
Prosecutor Mark Summers told the court today: "The (US) government says the defendant placed sell orders for stocks but never intended to sell."
The US justice department claims that Sarao and his company, Nav Sarao Futures Limited, made USD 878,000 of profit from the flash crash and a total of 26 million pounds illegally over five years.
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.
The so-called "flash crash" saw the Dow Jones industrial average briefly plunge more than 1,000 points on May 6, 2010, temporarily wiping out nearly 1 trillion dollars in market value.
He was freed in September last year after US authorities agreed he could be released on bail of 50,000 pounds.
Navinder Singh Sarao appeared at Westminster Magistrates' Court for a two-day hearing expected to last until Friday to decide if he can be extradited to the US.
American prosecutors allege the 37-year-old made millions of dollars through online trades from his parents' west London home, which amounted to market manipulation and caused a 1,000-point fall on the US Dow Jones index on May 6, 2010.
The charges include "spoofing" - the practice of buying or selling with the intent to cancel the transaction before execution.
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Prosecutor Mark Summers told the court today: "The (US) government says the defendant placed sell orders for stocks but never intended to sell."
Advertisement
The US justice department claims that Sarao and his company, Nav Sarao Futures Limited, made USD 878,000 of profit from the flash crash and a total of 26 million pounds illegally over five years.
Advertisement
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.
Advertisement
The so-called "flash crash" saw the Dow Jones industrial average briefly plunge more than 1,000 points on May 6, 2010, temporarily wiping out nearly 1 trillion dollars in market value.
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He was freed in September last year after US authorities agreed he could be released on bail of 50,000 pounds.
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