Software developer accused of aiding spoofing scheme renews motion for summary judgment

Maria Nikolova

Jitesh Thakkar and Edge Financial Technologies, charged with aiding and abetting a spoofing scheme operated by Navinder Sarao, seek a summary judgment in the lawsuit brought against them by the CFTC.

Several months after the Illinois Northern District Court denied a motion by Jitesh Thakkar and Edge Financial Technologies, Inc. for a summary judgment in the lawsuit brought against them by the Commodity Futures Trading Commission (CFTC), the defendants have renewed their attempts to secure a ruling in their favor.

On December 4, 2019, the defendants, which are accused of aiding and abetting a spoofing scheme operated by Navinder Sarao, filed a renewed motion for summary judgment with the Court.

Let’s recall that the when Court denied the first motion, it stated that the defendants could renew their motion after document discovery.

Shortly thereafter, Jitesh Thakkar filed a motion in the related criminal case to modify the protective order so that he could provide the CFTC with all the documents the DOJ produced to Jitesh Thakkar in discovery. After Judge Robert W. Gettleman granted Jitesh Thakkar’s motion, he copied and produced to the CFTC more than 800,000 pages of documents that the DOJ produced to him in the criminal case. The defendants also responded to the CFTC’s interrogatories and document requests in the civil case, producing another 1,068 pages of documents in addition to the voluminous documents previously produced by the defendants to the regulator.

Less than two weeks after the defendants’ production of discovery responses and documents, the CFTC sent thee defendants’ counsel notice of the CFTC’s intention to take depositions of four former Edge Financial employees. The CFTC offered no explanation as to why these depositions are necessary for it to respond to the defendants’ Motion for Summary Judgment.

Jitesh Thakkar and Edge Financial Technologies, Inc. request that the Court grant their motion, enter judgment in their favor, award them their costs and fees, and grant such other or further relief as this Court deems proper. If the CFTC insists it needs additional discovery to respond to the motion, the defendants request that the Court order the CFTC to provide an affidavit or declaration outlining exactly what discovery it still needs.

In April this year, Jitesh Thakkar was acquitted on the conspiracy count in the criminal case brought by the Department of Justice against him. Soon after that, the Court declared a mistrial on the remaining aiding and abetting counts. Three jurors came out to speak to the attorneys and informed the attorneys that the jury voted 10 to 2 in favor of finding Jitesh Thakkar not guilty of the aiding and abetting charges. Following this result, the DOJ decided not to retry the case, and the Court dismissed the remaining counts against the defendant with prejudice.

Read this next

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”

<