Citadel drops US Portofino suit, seeks UK bankruptcy order against firm’s founder

Citadel Securities has dropped its US lawsuit against Portofino Technologies and is now pursuing a bankruptcy order against the crypto firm’s co-founder, Leonard Lancia, in the UK, where a £6 million ($7.9 million) arbitration award remains unpaid.

From New York courtrooms to London enforcement

Lancia and his co-founder Alex Casimo left Citadel Securities in March 2021 to launch Portofino Technologies, a high-frequency crypto trading firm based in Zug, Switzerland. Citadel alleged they took proprietary information with them on the way out the door.

The London Court of International Arbitration sided with Citadel on the employment-related claims, awarding £6 million against Lancia and the co-founders. That award has gone unpaid.

Citadel filed a separate US lawsuit in 2023, this time targeting Portofino directly with trade secrets theft allegations. That case, filed in New York, largely survived motions to dismiss as of late 2024. But now Citadel has pulled the plug on the American proceedings entirely.

Lancia has reportedly attempted to lift asset freezes on his personal holdings, which has only complicated Citadel’s collection efforts. The response from Citadel: if he won’t pay voluntarily, they’ll pursue bankruptcy proceedings to force the issue.

What Portofino built while the lawyers were busy

Portofino Technologies operates as a licensed crypto market maker, providing liquidity across multiple trading platforms. It secured over $50 million in funding in 2022 from notable investors. The company holds a digital asset service provider license in the UK and maintains operations out of Switzerland.

The bankruptcy proceedings target Lancia personally, not Portofino as a corporate entity.

The bigger picture for crypto talent wars

The case highlights rising friction between traditional finance firms and emerging crypto startups on issues related to non-compete agreements and trade secrets. Investors should be paying attention: Portofino raised over $50 million before this legal situation fully played out, underscoring the need for due diligence on founding teams to include assessment of potential legal entanglements from previous employers.

If a bankruptcy order is ultimately granted against Lancia, it would represent one of the most aggressive enforcement actions a traditional finance firm has taken against a crypto founder. As of early July 2026, Citadel’s enforcement procedures are ongoing.

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