Citadel Securities, one of the world’s largest market makers, is reportedly suing two former employees, Leonard Lancia and Alex Casimo, after they left the company to form Portofino Technologies, a cryptocurrency market-making firm. The company claims that the duo started raising capital and building their trading firm while still being employed at Citadel and having access to its proprietary information.
According to Bloomberg News, Citadel is seeking a trial to determine the extent of monetary damages and potential restitution. The company has accused Lancia and Casimo of engaging in “a brazen scheme to steal Citadel Securities’ trade secrets, lie to their Citadel Securities colleagues and raid the ranks of Citadel Securities’ employees.” Prior to their departure, Lancia held the position of Citadel Securities’ head of Europe systematic options market making, while Casimo was part of the business management team.
During an internal investigation, Citadel Securities apparently discovered messages and a pitch deck from Portofino’s early fundraising efforts, months before Lancia and Casimo announced their intentions to leave the firm. This raises questions about the duo’s loyalty and commitment to their previous employer.
Portofino Technologies describes itself as a “crypto native technology start-up with 35+ employees across 5 global locations” on its LinkedIn page. The company claims to deploy proprietary market-making technology to trade on centralized, decentralized, and OTC digital asset markets, as well as provide token services and investments to Web3 companies.
Citadel, founded by billionaire Ken Griffin in 2001, has over 1,600 employees across its Chicago and Miami offices. As a market maker, the company buys and sells securities for its own account, providing liquidity in the process. Citadel explains on its website that market makers make it easier for investors to buy or sell a security quickly or in large volumes, delivering liquidity and depth to the market. During times of volatility, market makers help ensure that markets remain resilient by providing liquidity and depth when other participants may not.
On one hand, this lawsuit underlines the competitive landscape of the financial industry and raises concerns over the protection of proprietary information in a rapidly evolving market, such as cryptocurrency. On the other hand, it also emphasizes the growing interest and significance of blockchain technology and digital assets in the financial world. As the case unfolds, it is expected to provide valuable insights into the future of the market making industry and the role of cryptocurrency in it.
Source: Cryptonews
