(Bloomberg) — The Commodity Futures Trading Commissions lawsuit against the British trader accused of contributing to the 2010 flash crash was put on hold while U.S. prosecutors seek his extradition to face related charges.
London trader Navinder Singh Sarao is accused in the U.S. of spoofing the CME Group Inc. stock futures market to make about $40 million over four years.
U.S. District Judge Andrea Wood on Wednesday granted a request by federal prosecutors to delay the exchange of evidence in the lawsuit for four months to avoid damaging the criminal case. Wood agreed, saying it would be in the interest of justice to stay this matter. Such requests in parallel criminal and civil cases are common and usually granted.
On May 6, 2010, Saraos spoofing allegedly helped trigger a market plunge known as the Flash Crash. It temporarily wiped out almost $1 trillion of the value of U.S. equities. That day, Sarao made about $900,000, they contend.
Sarao, held since April by U.K. authorities as he fights extradition, is scheduled to seek reduction of his 5 million- pounds ($7.8 million) bail Friday in a London court.
Saraos bail was based on the funds in his accounts before his assets were subject to a worldwide freeze. Two judges have been unwilling to cut the amount, and one ruled in May that unless Sarao can prove he doesnt have access to undisclosed funds, the risk of him fleeing is too high.
An extradition hearing is scheduled for September in London, his lawyers said Wednesday. As Sarao left a U.K. court in May, he shouted to reporters that hed not done anything wrong apart from being good at my job.
The CFTC case is U.S. Commodity Futures Trading Commission v. Nav Sarao Futures Ltd., 15-cv-03398, and the criminal case is U.S. v. Sarao, 15-cr-00075, U.S. District Court, Northern District of Illinois (Chicago).
