Citadel is now named in a RICO lawsuit in Georgia along with others for defamation and intellectual property theft.
With Purpose, Inc., also known as GloriFi, has announced that its Chapter 7 Bankruptcy Trustee, secured creditors, and former CEO Toby Neugebauer have entered into a joint prosecution agreement, pending court approval, to take action against the defendants accused of conspiring against the pro-American financial services company.
The Trustee has filed a motion for court approval as part of the Chapter 7 bankruptcy proceedings, following a lawsuit from WPI Collateral Management, LLC on behalf of GloriFi’s secured creditors in the U.S. District Court for the Northern District of Georgia.
The 140-page complaint outlines allegations of defamation and intellectual property theft involving defendants such as Citadel, LLC, Peter Thiel, Vivek Ramaswamy, Joe Lonsdale, Nick Ayers, Rick Jackson, Keri Findley, and other prominent figures accused of conspiring to take control of GloriFi for their own benefit.
The lawsuit claims these defendants executed a “blitzkrieg” campaign to render the company ‘uninvestable’ for anyone but themselves while creating or investing in competing businesses.
It also details actions that contributed to GloriFi’s shutdown in 2022.
“GloriFi had significant potential, backed by a strong ethos and advanced technology, and was on track for remarkable success similar to leading companies in the nation,” the company said in a statement.
Just days after announcing its launch on social media, GloriFi attracted 33,000 members, with 5,000 opening financial services accounts.
The lawsuit alleges that within 72 hours, the defendants orchestrated a critical blow to the company.
At the time of its closure, GloriFi had a merger agreement in place with DHC Acquisition Corp, a Nasdaq-listed firm, which valued the company at $1.65 billion.
Neugebauer stated, “As this litigation proceeds, the employee-owners look forward to their day in court, where they can share their experiences—what they built at GloriFi and how the defendants, who benefit most from America, allegedly brought down the company that aimed to secure their rightful share of success.”
The release was published on July 22 — this is a developing story.
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Also Read: “The Game is Rigged”, Says Ex-Citadel Data Scientist
Other Market News Today
Billionaire Mark Cuban has now scrutinized the SEC for only protecting Wall Street, stating “I wouldn’t trust them to do the right thing ever”.
During a Reddit ‘Ask Me Anything’ (AMA) in the WallStreetBets forum in February 2021, billionaire investor Mark Cuban expressed strong criticism of the U.S. Securities and Exchange Commission (SEC).
In a post from his verified account, Cuban stated, “The SEC is a mess.
I wouldn’t trust them to do the right thing ever.
It’s an agency created by and for lawyers to win cases rather than to act in the interest of investors.”
He further criticized the SEC for prioritizing Wall Street over the protection of everyday investors.
Cuban argued that if the SEC truly focused on investor safety, it would establish clear guidelines regarding insider trading and market manipulation.
Instead, he claimed, “they would rather litigate to regulate,” suggesting that the SEC prefers to develop rules through lawsuits, which leaves the public uncertain and favors Wall Street.
Today, the SEC remains under scrutiny.
Gary Gensler, the current chair, has been advocating for new regulations aimed at enhancing market transparency and protecting investors.
While these initiatives aim to tackle emerging risks, they have sparked controversy within the hedge fund and banking industries.
Critics argue that the new regulations can be overly complex.
The SEC chair has been unable to solve issues retail investors have been facing for decades now — much of which revolves around the manipulation of stock prices by hedge funds short on securities.
Mark Cuban’s criticism of the SEC underscores an ongoing debate regarding the agency’s role and effectiveness.
As the SEC works to adapt to contemporary financial challenges, its success will hinge on finding the right balance between enforcement and market facilitation.
Whether it can respond to retail investors and rebuild trust is still uncertain, but its efforts to evolve are essential for its future influence.
Also Read: Exposures At Hedge Funds Now Surge To Over $28 Trillion
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