Navinder Singh Sarao, the British trader accused of helping cause the 2010 flash crash, spent the night in jail while sorting out the 5 million-pound ($7.5 million) bail payment due before release, a court clerk said.
Sarao, 36, will remain in custody until he pays the London court, according to the clerk, who asked not to be identified because payments are private. Sarao was granted bail Wednesday while he fights extradition to the U.S.
Sarao was arrested Tuesday at the house he shares with his parents near Heathrow airport after U.S. prosecutors filed charges against him. He was responsible for one in five sell orders during the frenzy on May 6, 2010, when investors saw nearly $1 trillion of value erased from U.S. stocks in just minutes, U.S. regulators said. He’s alleged to have made almost $900,000 on the day of the flash crash and $40 million from 2010 to 2014.
At his bail hearing, his lawyer said Sarao has 5 million pounds in trading accounts, 4.7 million pounds of which is a loan, and 100,000 pounds in “numerous betting accounts.”
Judge Quentin Purdy said he set a particularly strict bail -- which also requires Sarao to stay off the Internet, sleep at his parents’ home in Hounslow, and for his family to pay an additional 50,000 pounds -- to “secure you squarely in this jurisdiction.”
A lawyer for the U.S. government said they were concerned he was a flight risk because of the possible long sentence he faces. He could be sentenced to as long as 380 years in prison if convicted on all 22 counts.
Sarao has piqued interest across the globe as regulators’ face questions over the vulnerability of markets and how a lone trader could have contributed so significantly to the 2010 crash.
Lawyers for Sarao didn’t immediately return calls for comment. A spokesman for the U.K. Crown Prosecution Service said he didn’t know Sarao’s bail status.