London's $40m 'flash crash' trader is to face extradition to the US
Navinder Singh Sarao will appeal, says lawyer
Navinder Singh Sarao, the man accused of causing the stock market “flash crash” in 2010 has lost his court battle against extradition to the US.
In 2010 Sarao, 36, was alleged to have knocked $40m (£28m) off the financial markets.
He traded on the Chicago Mercantile Exchange from his parents' home near Heathrow.
He is accused of "spoofing" the market, which in his case included placing large orders and then cancelling them in order to manipulate stock prices, allowing them to be bought or sold at a profit.
District judge Quentin Purdy ruled, at Westminster magistrates court on Wednesday, that Sarao’s alleged actions were serious enough for him to be extradited to the US to stand trial there. Sarao denies any wrongdoing and will appeal against the decision.
Home Secretary Theresa May must now approve his extradition. In the US Sarao could have to answer to 22 counts of wire fraud, commodities fraud and market manipulation
According to the BBC Richard Egen, Sarao's lawyer, said: "We still think we have a strong argument and we will be appealing the decision once the Secretary of State makes her decision.
"We are very disappointed. We think we had a strong argument, but we will be going to the Court of Appeal to make our argument there." ®