Navinder Sarao, the alleged “Flash Crash” trader, was arrested on Tuesday.
Authorities believe that Navinder Sarao, 36, was connected to the Flash Crash that took place on May 6, 2010. This crash saw $1 trillion go missing from U.S. stock markets in only a few minutes. He was arrested for market manipulation and wire fraud and it’s believed his alleged activities that resulted in the crash weren’t noticed back in 2010, reports Reuters.
Navinder Sarao was living in London when he was arrested. CME Group started talking to Sarao about his trades in 2009. However, this didn’t stop him from allegedly continuing his manipulation into 2015. He held a seat at CME, which allowed him discounts with minimum vetting procedures, Reuters notes.
It’s believed that Navinder Sarao may have gained as much as $40 million from his allegedly illegal activities. However, he still lived in his parents’ house and didn’t live a luxurious lifestyle. Neighbors of Sarao didn’t know much about him and claim he doesn’t leave the house much, reports USA Today.
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