Citadel Drops U.S. Lawsuit Against Portofino, Pursues UK Bankruptcy Case Instead

Citadel Securities has dropped its U.S. trade secrets lawsuit against crypto market maker Portofino Technologies, shifting its focus toward collecting an unpaid arbitration award through bankruptcy proceedings in the UK against the firm’s founder.

Case Dismissed Without Ruling On Merits

In a Wednesday filing, Citadel and Portofino jointly agreed to dismiss the New York case, with each side covering its own legal costs. Citadel said the decision was unrelated to the strength of its trade secret claims, but reflected a practical shift after already winning a separate London arbitration case against Portofino’s founders on unrelated employment claims, including breach of contract and deceit.

Bankruptcy Petition Targets Founder Leonard Lancia

Also on Wednesday, Citadel asked England’s High Court to declare Portofino founder Leonard Lancia bankrupt, citing an unpaid arbitration award of nearly 6 million pounds. According to the filing, the award was recognized by the High Court in February, a formal payment demand went unmet in April, and Lancia’s attempt to challenge that demand was rejected in May. Citadel says it holds security worth only about 21,886 pounds against the debt.

Company Says Collection, Not Liability, Is The Issue

Citadel noted that Lancia remains subject to a worldwide freezing order and that evidence at a June 26 hearing failed to show his ownership stake in Portofino carries meaningful value. Portofino, founded in 2021 by former Citadel Securities executives, provides trading infrastructure, market making and treasury services across digital asset markets.