Citadel Withdraws U.S. Case Against Portofino, Targets Founder in UK Bankruptcy Move

Here’s a clear and concise paraphrased version:

After securing a £6 million arbitration award in London, Citadel decided to drop its U.S. trade secrets lawsuit, stating that pursuing another judgment was unlikely to result in any meaningful recovery.

The firm withdrew its case against crypto market maker Portofino Technologies, noting that it was already struggling to collect nearly £6 million (about $8 million) from a prior ruling, making further legal action financially impractical.

In a filing submitted Wednesday in the U.S., Citadel and Portofino jointly agreed to dismiss the New York case. On the same day, Citadel petitioned England’s High Court to declare Portofino founder Leonard Lancia bankrupt over the unpaid award—highlighting a shift in focus from establishing liability to recovering funds.

Under the dismissal terms, both parties will cover their own legal expenses, and Citadel also dropped claims against unnamed defendants.

Portofino Technologies, a Swiss-based crypto fintech firm founded in 2021 by former Citadel Securities executives, provides institutional trading infrastructure, including market making, OTC trading, and treasury services for digital asset participants.

The dismissal concludes nearly three years of litigation without a court ruling on the trade secrets claims.

Citadel emphasized that abandoning the U.S. case was not a reflection of the strength of its claims. It pointed out that it had already won a separate London arbitration involving employment-related disputes such as breach of contract, conspiracy, and deceit—an award later recognized and enforced by the High Court.

However, despite the legal win, Citadel has been unable to recover the funds, prompting its bankruptcy action against Lancia.

According to court filings, Lancia owes £5.98 million from the 2025 arbitration award issued by the London Court of International Arbitration, along with additional interest and costs.

The filing also notes that the award was upheld by England’s High Court in February, a statutory demand issued in April went unpaid, and Lancia’s attempt to challenge it was rejected in May.

Citadel estimates that it holds only about £21,886 in secured assets against the debt, consisting mainly of minor bank balances and small stakes in French companies.

In a letter tied to the U.S. case dismissal, Citadel added that Lancia is subject to a global asset-freezing order and ongoing bankruptcy proceedings. It also said that evidence presented at a June 26 High Court hearing failed to convince the court that his stake in Portofino had significant value.

“These developments have led Citadel Securities to conclude that further litigation would likely produce little more than another unenforced judgment,” the company said.