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ARTICLE · 27 MAY 2019

U.S. District Judge Declares Mistrial In "Flash Crash" Spoofing Case

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A U.S. District Judge for the Northern District of Illinois declared a mistrial after jurors were unable to reach a unanimous verdict concerning an alleged commodities spoofing scheme.

United StatesFinance and Banking
Robert Zwirb
Robert Zwirb
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A U.S. District Judge for the Northern District of Illinois declared a mistrial after jurors were unable to reach a unanimous verdict concerning an alleged commodities spoofing scheme related to the 2010 Dow Jones "Flash Crash."

According to the Complaint, Jitesh Thakkar, the founder and principal of Edge Financial Technologies, Inc., allegedly (i) created an automated program to reduce the risk that an order intended to spoof other traders would be executed, and (ii) gave the automated program to another trader who used it to place spoof orders.

The trader who used the automated program in sending spoofing orders had previously pled guilty to wire fraud and spoofing on the Chicago Mercantile Exchange. Mr. Thakkar claimed that he did not know what the trader intended to do with the software.

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