Citadel Strikes Again: Sues Crypto Executives Over Buying and selling Secrets and techniques

Citadel Strikes Again: Sues Crypto Executives Over Buying and selling Secrets and techniques

Per a current report, hedge fund and market maker behemoth Citadel is suing two former executives. The people recognized as Leonard Lancia and Alex Casimo broke off from the corporate to begin a high-frequency buying and selling agency known as Portofino Applied sciences.

In accordance with the lawsuit filed by Citadel Securities, Lancia, former Head of Europe Systematic Market Making for Derivatives, and Casimo, Enterprise Supervisor for the agency’s Europe crew, tried to lift capital for his or her agency whereas nonetheless working on the hedge fund. Thus, the people allegedly breached their settlement with the corporate as they nonetheless have entry to proprietary data.

Citadel Securities is likely one of the world’s largest and most outstanding hedge funds; its proprietary merchandise enable it to realize an edge over its rivals. Final 12 months alone, the hedge fund scored over $16 billion in revenue whereas the remainder of the market trended to the draw back.

Subsequently, the corporate jealously protects its mental property. After analyzing the precise financial damages for Lancia and Casimo’s alleged actions, the hedge fund seeks potential restitution.

BTC’s worth shifting sideways on the day by day chart. Supply: BTCUSDT Tradingview

Crypto Execs Stole Buying and selling Secrets and techniques From Citadel?

In 2022, Portofino founders, Lancia and Casimo, claimed to have secured round $50 million to launch their crypto buying and selling agency. The crypto agency was launched to supply liquidity for establishments and whales within the nascent sector.

When the executives left the agency, Citadel Securities launched an inner investigation. In consequence, they discovered a pitch deck from Portofino’s fundraising stage.

The pitch was dated “months earlier than the pair introduced their intent to go away the agency,” the grievance famous. The investigation discovered that Casimo and his companion supplied details about Citadel’s proprietary buying and selling methods, together with Excessive-Frequency Buying and selling (HFT).

Per the report, the hedge fund, price over $50 billion, said the next within the grievance:

(…) engaged in a brazen scheme to steal Citadel Securities’ commerce secrets and techniques, deceive their Citadel Securities colleagues and raid the ranks of Citadel Securities’ workers.

As of this writing, neither Casimo nor Lancia has replied to the lawsuit or the allegations offered by Citadel Securities.

Cowl picture from Unsplash, chart from Tradingview

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