Citadel Abandons U.S. Claim, Moves to Bankrupt Portofino Founder in UK

Here’s a more concise and fluid rewrite:

After securing a £6 million arbitration award in London, Citadel has dropped its U.S. trade secrets lawsuit, concluding that further litigation would likely result in another judgment it cannot collect.

The firm abandoned its case against crypto market maker Portofino Technologies, citing ongoing challenges in recovering the nearly £6 million (about $8 million) already awarded, making additional legal action economically unviable.

In a filing on Wednesday, Citadel and Portofino agreed to dismiss the New York case. At the same time, Citadel petitioned England’s High Court to declare founder Leonard Lancia bankrupt over the unpaid award—marking a shift from pursuing liability to enforcing payment.

Under the agreement, both sides will bear their own legal costs, and Citadel also dropped claims against unnamed defendants.

Portofino Technologies, a Swiss crypto-native fintech founded in 2021 by former Citadel Securities executives, provides institutional services including market making, OTC trading, and treasury management.

The dismissal ends nearly three years of litigation without a ruling on the trade secrets allegations.

Citadel said the decision was not tied to the strength of its claims, noting it had already won a separate London arbitration involving breach of contract, conspiracy, and deceit—an award later recognized by the High Court.

However, difficulties in collecting that judgment have led the firm to pursue bankruptcy proceedings against Lancia.

Court filings state that Lancia owes £5.98 million from the 2025 arbitration award issued by the London Court of International Arbitration, along with interest and legal costs.

The filing adds 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 it holds just £21,886 in secured assets against the debt, mainly small bank balances and minor stakes in French companies.

In its letter to the U.S. court, Citadel also noted that Lancia is subject to a worldwide asset-freezing order and ongoing bankruptcy proceedings. It added that evidence presented at a June 26 High Court hearing failed to show his stake in Portofino has meaningful value.

As a result, Citadel concluded that continuing litigation would likely yield little more than another unenforced judgment.