‘Flash crash trader’ extradition hearing put back to 2016

‘Flash crash trader’ extradition hearing put back to 2016

The fate of Navinder Singh Sarao, known as the trader whose actions may have helped cause the 2010 flash crash, will not be decided until 2016 after his London extradition hearing was adjourned Friday.

Sarao, who was arrested by U.K. authorities in April, amassed a nearly £30 million fortune. But rather than snapping up a luxury Mayfair bachelor pad, still lived with his parents in a three bedroom house on a nondescript street in suburban London.

Sarao, who was wearing a light grey suit, pink shirt and dark tie, spoke only to confirm his name, address and that he doesn't accept extradition.

At the hearing in central London Friday, new allegations against Sarao by U.S. prosecutors claim that his allegedly criminal behavior started six months earlier than previously claimed.

The hearing was postponed until the first week of February 2016.

Sarao's lawyers, who were missing their lead counsel Friday due to an injury, argue against extradition on the grounds of his recently diagnosed severe Asperger's Syndrome, a form of autism which often affects people with high intelligence, and that his current "mental health was fragile. They also argue that Sarao's conduct, as it is described in U.S. court filings, does not amount to a criminal offence in the U.K.

If forced to go to the U.S., he will face 22 counts of fraud and commodity manipulation, carrying a maximum of 380 years in jail. The U.S. is generally viewed as a harsher environment for white collar crime than the U.K.

Navinder Singh Sarao leaves Westminster Magistrates Court on August 14, 2015 in London, England. Navinder Singh Sarao, a British financial trader accused of helping trigger a multibillion-dollar US stock market crash, has been granted bail while he fights extradition to America.
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Sarao, who was released on bail last month after months in a U.K. prison, has previously said in court he is only guilty of being good at his job.

He is accused of a practice known as "spoofing", where a trader tricks other people in the markets by executing large orders they don't intend to follow through. This is often associated with the sometimes controversial practice of high frequency trading.

Read More The real message from the 'Flash Crash' arrest

In emails allegedly from Sarao and released by the U.S. Department of Justice earlier this month, the trader talks about "spoofing" the market and about other people "breaking all these rules".

"If I am short I want to spoof it [the market] down, so I will place join offer orders," he is supposed to have written in a February 2009 email. "I want to put these join offer orders in the system much like a normal order but they are only seen when the market bid is taken out, or when the market goes offered."

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