Citadel Securities alleged that two former employees formed a cryptocurrency firm 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 their firm, 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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