The U.S. request to extradite London-based trader Navinder Sarao, accused of helping to spark the 2010 Wall Street 'flash crash', is 'false and misleading' because it misrepresented the way markets work, his lawyer said on Thursday.
Reuters reports that Sarao is wanted by U.S. authorities after being charged with 22 criminal counts including wire fraud, commodities fraud, commodity price manipulation and attempted price manipulation.
The 36-year-old, who lives and worked at his parents' modest home near London's Heathrow airport, is accused of using an automated trading programme to 'spoof' markets by generating large sell orders that pushed down prices.
He then cancelled those trades and bought contracts at lower prices, prosecutors say. The flash crash saw the Dow Jones Industrial Average briefly plunge more than 1,000 points, temporarily wiping out nearly $1tril in market value.
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