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Accused British "Flash Crash" Trader to be Extradited to the US

posted by martyb on Sunday October 16 2016, @12:53PM   Printer-friendly
from the where-were-the-air-bags? dept.

Whoever writes:

Navinder Sarao has lost his appeal and is set to be extradited to the USA, where he faces charges with a possible maximum sentence of 380 years. He is accused of causing the "flash crash" in 2010, when the Dow Jones index dropped by 1000 points. He ran his trading from his bedroom in his parents' house and it is claimed that he made more than £30M (approximately $40M) in 5 years. His parents had no idea what he was doing, nor the scale of his income. He is accused of placing trades that he never intended to fill, so, to this naive person, it's hard to distinguish what he did from that of the large high-speed trading firms.

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  • (Score: 2) by janrinok on Monday October 17 2016, @09:30AM

    by janrinok (52) Subscriber Badge on Monday October 17 2016, @09:30AM (#415147) Journal

    He is not going to jail - he is going to stand trial for the alleged offences, which have yet to be proven.

    However, the US judicial system being what it is, I suspect the trial is superfluous to the outcome. This is for someone who has never entered the United States, and is not under their jurisdiction. And before you say that he 'committed a crime' in the US, why aren't the systems protected against such transactions, and why does the US never extradite its citizens when they commit crimes overseas? I do wonder why the UK government insists that this is the 'right' thing to do.

    From the second link in TFS:

    In one of the most ridiculous perversions of justice, last April the SEC flipped its official narrative over the May 2010 flash crash, when it moved away from its closely held "explanation" that the 1000 point plunge in the Dow Jones was due to a trade by Waddell and Reed, and instead blamed a sole operator, London-based futures trader, Navinder Singh Sarao, ... for the fiasco.

    The failure seems to be that the system created is too fragile to even survive that actions of one single individual. But let's incarcerate him anyway rather than try to change the system. There is a profit in the former (for those running the penal system) but nothing in the latter.

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