The government's side of the story can be found here:
https://www.cftc.gov/PressRoom/PressReleases/pr7689-18
A link to the indictment can be found here:
https://www.cftc.gov/PressRoom/PressReleases/pr7689-18
A link to the indictment can be found here:
Does it seem odd that the identity of "Trader A" is shielded given they are the party that directly violated the law? Is "Trader A" taking a plea deal to testify against Thakkar?
I'm sure the truth lies someplace in between, but the government allegations (if taken at face value) seem (to me) to be both plausible and damning. Personally, I hope "Trader A" pays a price and not just these devs.
Unfortunately, at the moment, the government's side sure does read like "Trader A" said: "Hey I would like to break the law, can you help me?" and the devs said "Sure, we can do that."
Apparently, he played a role in the 2010 "Flash Crash":
https://en.wikipedia.org/wiki/2010_Flash_Crash#Evidence_of_m...
Looks like he pled guilty in a Chicago court in 2016 and is currently in prison:
http://fortune.com/2016/11/13/sarao-flash-crash-trader-fraud
> Navinder Singh Sarao, a London-based stock trader, has pled guilty to one count of wire fraud and one count of “spoofing” in a Chicago court. He is expected to serve 78 to 97 months in jail and surrender nearly $13 million, according to the Telegraph.
> Sarao’s crime involved manipulating derivatives prices by placing and quickly cancelling a massive number of orders on the Chicago Mercantile Exchange. Between 2009 and 2014, Sarao reportedly earned $40 million through manipulation.
> perhaps supported by other platforms
I which other platforms is this legal, it looks very shady.
> Does it seem odd that the identity of "Trader A" is shielded
My guess is that "Trader A" snitched the dev in exchange of a reduction of the sentence.
3. Sarao, the trader, is a witness against Jitesh and is part of his plea deal.
2. Which other platforms is this legal?
Answer: Adding quantity to an order is legal on most stock markets, and derivatives markets around the world.
Adding to your order is a perfectly legitimate transaction. Think of it as "Just before the price rises, I want to buy all I can." or the opposite "Just before the price falls, I want to sell all I can."
Trader A is identified. He (Sarao) made millions off his trading and spoofing. Jitesh and Edge Financial were only paid $24,000 for their programming work.
According to the motion to dismiss (which the judge ruled was arguments for trial):
> The indictment against Jitesh contains no allegations
> that Sarao ever told Jitesh that he planned to spoof,
> move the market, or engage in any other illegal activity,
> which is consistent with Sarao’s FBI interview reports
> in which he told the government that he did not tell
> Jitesh what he planned to do. This is also consistent
> with Sarao’s indictment, which recounts Sarao’s
> conversations about his intent to spoof with the other
> three programmers over five pages of the indictment,
> but only contains one reference to Jitesh: “In
> approximately late 2011, SARAO began working with
> [Jitesh], to further develop the automated trading
> programs and functions he had been working to design
> and implement since early 2009.”