‘Flash crash’ trader wins bail

As well as the requirement to deposit 5 million pounds in a court account, the original bail conditions included wearing an electronic tag, complying with a night-time curfew at his home in Hounslow, west London, and reporting to a police station three times a week.

The trader charged over his role in the 2010 U.S. flash crash will be released from a London prison as soon as Friday after a judge changed the terms of his bail while the he fights extradition.

Sarao is accused of using an automated programme to “spoof” markets by generating large sell orders that pushed down prices.

Navinder Singh Sarao, 36, had remained behind bars after failing to have the payment of a £5 million security removed from his bail conditions.

Navinder Singh Sarao, the trader accused of contributing to the 2010 flash crash, will be let out on bail today after the US authorities dropped their opposition to his release.

Prosecutors now say they know where Sarao’s assets are after he made a declaration, and in return have reduced his bail to £50,000.

The US Justice Department (DoJ) subsequently said he can walk free if he comes up with the money in the coming weeks.

The judge said Sarao won’t be able to leave the greater London area circled by the M25 highway and can’t access the Internet for “fiscal” purposes.

If extradited, he would answer 22 charges including wire fraud, commodities fraud and market manipulation, and could face a sentence of 380 years if convicted.

Sarao has denied wrongdoing, telling the court in May: “I’ve not done anything wrong apart from being good at my job”. On that day, the Dow Jones index lost 700 points in a matter of minutes – wiping about $800bn off the value of US shares – before recovering just as quickly.