Key facts
- Citadel Securities dropped its U.S. trade secrets lawsuit against crypto market maker Portofino Technologies.
- The firm is pursuing a nearly 6 million-pound London arbitration award against Portofino co-founder Leo Lancia.
- Citadel Securities has petitioned the High Court in London to bankrupt Lancia over the unpaid award.
- Portofino Technologies is a Swiss crypto-native financial technology firm founded in 2021 by former Citadel Securities executives.
- Citadel Securities believes further litigation would likely result in another unsatisfied judgment.
Citadel Securities has withdrawn its U.S. trade secrets lawsuit against crypto market maker Portofino Technologies, concluding that pursuing another court victory would likely result in an unpaid judgment. The firm is now shifting its focus to collecting a nearly 6 million-pound arbitration award previously won in London against Portofino co-founder Leo Lancia.
In a filing made Wednesday in the U.S., Citadel and Portofino jointly agreed to dismiss the New York case. Simultaneously, Citadel petitioned England's High Court to declare Lancia bankrupt over the outstanding arbitration award. This strategic shift indicates the dispute has moved from establishing liability to enforcing payment.
Under the U.S. stipulation, each party will cover its own legal fees and costs. Portofino Technologies, a Swiss firm founded in 2021 by former Citadel Securities executives, provides institutional trading infrastructure for digital asset markets, including market making and OTC trading services.
The dismissal concludes nearly three years of litigation without a ruling on Citadel's trade secret allegations. Citadel stated that the decision to drop the case was not based on the merits of its claims but on the inability to collect the London arbitration award. This award, recognized by England's High Court, includes damages and legal costs for claims such as breach of contract and deceit.
Citadel's petition to the High Court highlights that Lancia owes 5.98 million pounds from a 2025 award, plus interest and costs. Despite the award being recognized and a statutory demand served in April, it went unsatisfied. Lancia's attempt to set aside this demand was dismissed in May. Citadel estimates its security against the debt is minimal, valued at approximately 21,886 pounds.
Further complicating Lancia's position, he is subject to a worldwide freezing order, and evidence presented in a recent High Court hearing suggested his ownership stake in Portofino holds little significant value. Citadel concluded that further litigation would likely result in another unsatisfied judgment.