The Wild $50M Ride of the Flash Crash Trader
Bloomberg Originals・2 minutes read
A British trader named Navinder Singh Sarao manipulated the market during the 2010 flash crash, allegedly making $40 million and causing a trillion-dollar loss. Despite facing legal troubles and a potential 380-year sentence, Navinder pleads guilty, is extradited to the U.S., and receives a lenient one-year house arrest sentence.
Insights
- Navinder Singh Sarao, a skilled trader, manipulated the market using his own algorithm during the 2010 flash crash, causing a trillion-dollar loss before being accused of illegal trading practices by U.S. regulators.
- Despite facing severe legal consequences and financial troubles, Navinder pleads guilty, cooperates with authorities, and receives a lenient sentence of house arrest due to his Asperger's diagnosis, highlighting the complex intersection of financial crime, mental health, and legal outcomes.
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Recent questions
What caused the 2010 flash crash?
Market manipulation by Navinder Singh Sarao.