On Wednesday, July 8, 2026, CoinDesk reported that Citadel abandoned its multi-year U.S. trade secrets lawsuit against crypto market maker Portofino Technologies, shifting its focus to a bankruptcy order against Portofino’s founder, Leonard Lancia. This strategic move comes as Citadel faces challenges in collecting a nearly £6 million ($8 million) judgment it had already secured.
In a filing with a U.S. court, Miami-based Citadel and Portofino jointly agreed to dismiss the New York trade secrets case. Concurrently, Citadel initiated proceedings in England’s High Court to declare Portofino founder Leonard Lancia bankrupt due to the unpaid arbitration award. These actions signify a pivot from establishing liability to the pursuit of monetary recovery.
The U.S. stipulation dictates that both parties will cover their own legal fees and costs, with Citadel also withdrawing claims against unnamed Doe defendants. Portofino Technologies, a Swiss firm founded in 2021 by former Citadel Securities executives, specializes in providing institutional trading infrastructure for digital asset markets, including market making and over-the-counter (OTC) trading services.
A spokesperson for Citadel Securities stated that Mr. Lancia had repeatedly misled his colleagues and Portofino’s investors, and the company intends to enforce the UK court’s judgment. Conversely, Portofino’s U.S. lawyer, David Slarskey, characterized Citadel’s pursuit as an attempt to retaliate against former employees for leaving the firm, alleging that Citadel won a significantly smaller arbitration award than initially sought and achieved no victory on trade secret claims.
The dismissal of the U.S. case concludes nearly three years of litigation without a ruling on Citadel’s trade secret allegations. Citadel maintains that the decision to cease pursuing this case was unrelated to the merits of its claims. Instead, the company asserted it had already achieved a favorable outcome in a separate London arbitration against Portofino’s founders concerning employment-related claims, which included breaches of contract and conspiracy.
Despite this prior arbitration victory, Citadel reported an inability to collect the award, prompting the bankruptcy petition against Lancia. Court documents indicate that Lancia owes Citadel £5.98 million from a 2025 award by the London Court of International Arbitration, in addition to interest and costs.
The petition further details that England’s High Court recognized these awards in February, a statutory demand served in April went unsatisfied, and Lancia’s attempt to have that demand dismissed was unsuccessful in May.
Citadel’s assessment suggests its security against the debt is limited to approximately £21,886, primarily comprising small bank accounts and minority stakes in French companies. In correspondence accompanying the U.S. dismissal, Citadel also highlighted that Lancia is subject to a worldwide freezing order and is undergoing bankruptcy proceedings.
Evidence presented at a June 26 High Court hearing reportedly failed to convince the court of the significant value of his ownership stake in Portofino. Consequently, Citadel Securities concluded that further litigation would likely result in another unsatisfied judgment.
Source: CoinDesk
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