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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Citadel Strikes Back: Sues Crypto Executives Over Trading Secrets

Reynaldo Marquez
Reynaldo Marquez
1 year ago
2 mins read
Citadel Crypto BTCUSDT

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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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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.

Bitcoin Citadel Crypto
BTC’s price moving sideways on the daily chart. Source: BTCUSDT Tradingview

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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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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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

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We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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