The Hound of Hounslow, the trader allegedly at the centre of the 2010 flash crash, has pleaded guilty in a Chicago court to wire fraud and spoofing.
Navinder Sarao hit the headlines after he was accused of crashing American stock markets by placing enormous orders via a trading platform based in his Hounslow bedroom.
The 37-year-old who has been extradited from the UK after battling against such an order, is facing 22 charges of fraud and market manipulation. In his first appearance in a US court he pleaded guilty to two of the counts and agreed to gave back $12.9m that he had made from the trades.
Sarao is reported to have made $900,000 in one day on 6 May 2010 by spoofing – placing huge trades and then immediately cancelling them – the Dow Jones. His strategy contributed to around $1 trillion being wiped-off the value of US equities temporarily.
It is alleged that Sarao made a total of $40m from trades using the technique between 2009 and 2014.