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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 start out a high-frequency buying and selling agency referred to as Portofino Applied sciences.
In keeping 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 workforce, 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 without doubt one of the world’s largest and most outstanding hedge funds; its proprietary merchandise permit 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.
Due to this fact, the corporate jealously protects its mental property. After inspecting the precise financial damages for Lancia and Casimo’s alleged actions, the hedge fund seeks potential restitution.
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 offer liquidity for establishments and whales within the nascent sector.
When the executives left the agency, Citadel Securities launched an inside investigation. Consequently, they discovered a pitch deck from Portofino’s fundraising stage.
The pitch was dated “months earlier than the pair introduced their intent to depart the agency,” the criticism famous. The investigation discovered that Casimo and his accomplice supplied details about Citadel’s proprietary buying and selling methods, together with Excessive-Frequency Buying and selling (HFT).
Per the report, the hedge fund, value over $50 billion, acknowledged the next within the criticism:
(…) engaged in a brazen scheme to steal Citadel Securities’ commerce secrets and techniques, mislead 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 introduced by Citadel Securities.
Cowl picture from Unsplash, chart from Tradingview
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