Citadel abandons multi-year crypto lawsuit to focus on bankruptcy order against an ex-employee

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Citadel abandoned its U.S. trade secrets lawsuit against crypto market maker Portofino Technologies, saying it no longer made financial sense to pursue another court victory while struggling to collect a nearly 6 million-pound ($8 million) judgment it already won.

In a filing made on Wednesday in the U.S., Miami-based Citadel jointly agreed with Portofino to dismiss the New York trade secrets case. Also on Wednesday, Citadel asked England’s High Court to declare Portofino founder Leonard Lancia bankrupt over the unpaid arbitration award. The moves underscore that the dispute has shifted from proving liability to collecting money.

Under the U.S. stipulation, each side will bear its own legal fees and costs, and Citadel also dismissed claims against unnamed Doe defendants.

Portofino Technologies is a Swiss crypto-native financial technology firm that provides institutional trading infrastructure for digital asset markets. Founded in 2021 by former Citadel Securities executives, the company specializes in market making, over-the-counter (OTC) trading and treasury management services for exchanges, token issuers, institutional investors and Web3 projects.

A spokesperson for Citadel Securities said “Mr. Lancia repeatedly lied to his colleagues at Citadel Securities and to Portofino’s investors, and we intend to enforce the UK court’s substantial judgment.”

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