Scott Arnold, a former trader at Marshall Wace, who is set to join Citadel, is seeking a larger share of profits from his past employer’s early investment in stablecoin issuer Circle Internet Group, according to a report by Bloomberg.
Arnold claims that he spearheaded what has become one of the firm’s most lucrative trades. Marshall Wace, which manages roughly $79bn, invested $200m in Circle in 2021, years ahead of the company’s June 2025 IPO. The stake has since surged almost fivefold, valuing the hedge fund’s holdings at $1.3bn, though the position remains locked until December. The investment was made through the XO Digital Finance Fund, part of Marshall Wace’s $24bn Eureka fund, which doubled its initial allocation in 2022.
Citadel-bound Arnold asserts he sourced and led the Circle trade, resulting in gains exceeding $1bn for Marshall Wace. His legal team claims that the hedge fund recognised his contributions but offered him only $500,000. Marshall Wace disputes Arnold’s account, according to sources familiar with the matter.
The Circle investment marked Marshall Wace’s largest ever bet on an unlisted security, made from the XO Digital fund led by managing partner Amit Rajpal. The fund has applied a 20% discount to the stock in its net asset value calculations, reflecting lock-up restrictions, and recently reclassified the investment to indicate improved liquidity.
Arnold is expected to join Citadel’s Global Equities division, though the firm declined to comment.
