The world's most dangerous trader (to ever trade exclusively from his childhood bedroom) is finally being brought to justice... American justice.
Navinder Sarao, a 37-year-old sweatsuit aficionado who is accused of crashing the CME all by his lonesome from the comfort of his mom's house in a London suburb, is entering a new chapter of what must be a Kafka-esque nightmare.
A British judge approved on Wednesday a U.S. request for the extradition of a London-based trader accused of contributing to the 2010 Wall Street "flash crash" by placing bogus orders to spoof the market.
This clears the way for Sarao to come to the US and stand trial as the only person charged with causing the 2010 "Flash Crash" that sent the Dow Jones into a 1,000 point/$1 trillion nosedive. The charges were filed in a Chicago federal court and -pending appeal in Britain - Sarao will likely have to travel there and face 22 charges of fraud for his "spoofing" trading patterns.
But his appeal could be successful considering it appears as if the British judge left a barn door-sized opening for Sarao to escape.
The decision of judge Quentin Purdy was not related to Sarao's guilt or innocence but on technical matters such as whether the offences of which he is accused are a crime in Britain.
Oh, but that's not all...
While Purdy rejected Sarao's arguments against extradition, he also cast doubt on the role the trader is alleged to have played in the crash.
"The causes of the flash crash are not a single action and cannot on any view be laid wholly or mostly at Navinder Sarao’s door, although he was active on the day," the judge said in his written ruling.
However Purdy added the flash crash was just one of the 400 trading days referred to by U.S. prosecutors.
And that reasoning jibes with a Stanford study which found Sarao probably couldn't have caused the flash crash on his own. It also jibes with basic logic.