Citadel Strikes Back: Sues Crypto Executives Over Trading Secrets
17 Mayo 2023 - 2:41PM
NEWSBTC
Per a recent report, hedge fund and market maker behemoth Citadel
is suing two former executives. The individuals identified as
Leonard Lancia and Alex Casimo broke off from the company to start
a high-frequency trading firm called Portofino Technologies.
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Price Surge According to the lawsuit filed by Citadel Securities,
Lancia, former Head of Europe Systematic Market Making for
Derivatives, and Casimo, Business Manager for the firm’s Europe
team, tried to raise capital for their firm while still working at
the hedge fund. Thus, the individuals allegedly breached their
agreement with the company as they still have access to proprietary
information. Citadel Securities is one of the world’s largest and
most prominent hedge funds; its proprietary products allow it to
gain an edge over its competitors. Last year alone, the hedge fund
scored over $16 billion in profit while the rest of the market
trended to the downside. Therefore, the company jealously protects
its intellectual property. After examining the exact monetary
damages for Lancia and Casimo’s alleged actions, the hedge fund
seeks potential restitution. Crypto Execs Stole Trading Secrets
From Citadel? In 2022, Portofino founders, Lancia and Casimo,
claimed to have secured around $50 million to launch their crypto
trading firm. The crypto firm was launched to provide liquidity for
institutions and whales in the nascent sector. When the executives
left the firm, Citadel Securities launched an internal
investigation. As a result, they found a pitch deck from
Portofino’s fundraising stage. The pitch was dated “months before
the pair announced their intent to leave the firm,” the complaint
noted. The investigation found that Casimo and his partner offered
information about Citadel’s proprietary trading techniques,
including High-Frequency Trading (HFT). Per the report, the hedge
fund, worth over $50 billion, stated the following in the
complaint: (…) engaged in a brazen scheme to steal Citadel
Securities’ trade secrets, lie to their Citadel Securities
colleagues and raid the ranks of Citadel Securities’ employees.
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Ruling As A Victory For The People As of this writing, neither
Casimo nor Lancia has replied to the lawsuit or the allegations
presented by Citadel Securities. Cover image from Unsplash, chart
from Tradingview
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