‘Flash crash’ trader wins bail

A trader accused of contributing to a Wall Street crash which wiped $800bn off the value of US shares has been bailed, the BBC reports.

In May 2010, the Dow Jones lost 600 points in just five minutes before rapidly recovering, leading to UK-based Navinder Singh Sarao being accused of market manipulation by US authorities.

The US Department of Justice claims that Sarao and his firm, Nav Sarao Futures, made £26m ($40m) illegally over five years by using software to place $200m of false trades from his parents’ home in Hounslow, west London.

The DoJ is seeking to extradite Sarao on charges of wire and commodities fraud, but the former trader has now been released on bail after his conditions were changed.

Sarao was originally required to put up £5m for bail, but argued this was impossible while his assets were frozen.

However, following a deal that saw him reveal the location of more than £30m in assets to authorities, Wesminster Magistrates Court dropped the £5m security requirement.

Under terms of his bail, Sarao must stay at his parents’ home each night and cannot travel internationally or use the internet.

A full extradition hearing is set to being on 24 September.