Citadel Securities crypto fight escalated as the market maker seeks $7.9 million from a former employee over his crypto startup.
Citadel Securities, one of the world’s largest market makers, is trying to recover $7.9 million from Leonard Lancia, its former Europe derivatives market-making executive, after he left and co-founded high-frequency crypto trading firm Portofino Technologies, Bloomberg reports.
The $7.9 million comes from a London employment arbitration involving Lancia and two former Citadel colleagues. Citadel won about $7.9 million in damages and costs, though Lancia’s lawyer said most of that was legal fees and far below the $200 million Citadel had originally sought.
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Citadel Says Lancia Hasn’t Paid
Citadel’s lawyers said Lancia hasn’t paid the debt and opposed his attempt to lift a freezing order on his assets. But Lancia denies that framing. But Lancia’s lawyer, Gary Summers, argues his client rejects Citadel’s description of the case, saying that the allegations are still being contested and shouldn’t be treated as proven facts.
The London dispute sits alongside a U.S. lawsuit Citadel filed against Portofino in 2023, alleging that Lancia and another colleague built the crypto startup idea while still at Citadel and stole trade secrets.
Portofino Technologies is a Zug, Switzerland-based crypto market making firm founded in 2021 by former Citadel Securities employees Leonard Lancia and Alex Casimo.
The company provides liquidity across crypto exchanges and over-the-counter markets. The startup came out of stealth in 2022 with more than $50 million in funding from Valar Ventures, Global Founders Capital and Coatue, according to Bloomberg.
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