Citadel Securities says ex-employees launched crypto firm with stolen trade secrets Citadel Securities says ex-employees launched crypto firm with stolen trade secrets
The company has filed a lawsuit against two former employees.
1 min read
Updated: Jun. 28, 2023 at 1:22 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Citadel Securities alleged that two former employees formed their cryptocurrency firm Portofino Technologies with the company’s proprietary information, Bloomberg News reported May 17.
Ex-employees allegedly stole trade secrets
The relevant complaint alleges that Leonard Lancia and Alex Casimo formed Portofino Technologies while working at Citadel Securities.
The two individuals’ positions at Citadel Securities supposedly allowed them to access the company’s proprietary information. Lancia and Casimo participated in a “brazen scheme to steal Citadel Securities’ trade secrets,” Citadel Securities said.
Citadel Securities said it found documents related to Portofino’s earliest fundraising efforts months before Lancia and Casimo said they would leave the firm. Casimo allegedly offered specific trading information to a potential partner as well.
The company now intends to receive damages and restitution in a trial.
Both firms are involved in crypto
Portofino is a market maker for crypto markets, meaning that it provides liquidity for financial institutions and large investors that trade those assets.
Citadel Securities similarly acts as a market maker. Though it does not work exclusively with crypto, it is known for its participation in the crypto industry.
Citadel Securities received $1.15 billion from crypto-focused VC firms Sequoia and Paradigm in January 2022. Those investors invested suggested the firm would move into crypto.
The company notably announced plans for a cryptocurrency trading ecosystem in partnership with Virtu Financial in June 2022. That platform is now called EDX Markets; it launched in September 2022, according to a later press release.
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Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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Citadel Securities
Citadel Securities is a global market-making firm and one of the leading participants in the financial markets.