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Hedge fund Altana sued by former investment partner IlliquidX

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Hedge fund firm Altana Wealth has been accused of misusing trade secrets to establish a profitable fund by London-based investment IlliquidX, according to a report by Bloomberg citing claims made during an ongoing UK trial.

The dispute arose after IlliquidX sued Altana following the collapse of a proposed joint venture in 2019. IlliquidX alleges that Altana used confidential information shared during the failed partnership to create a sanctions-compliant fund that invested in Venezuela’s sovereign debt.

The case, which is being heard in London’s High Court, highlights the high stakes for investors in Venezuela’s defaulted debt. Last year, the value of these assets surged, with investors hopeful for further gains and significant profits. The potential returns have made legal battles like this one worth pursuing.

IlliquidX’s legal team pointed to an email from Altana’s founder, Lee Robinson, to Steffen Kastner, director of Brevent Advisory Ltd, who introduced the two businesses. In the email, Robinson allegedly suggested that they could “share twice the pie” without further involvement from IlliquidX. Both Robinson and Kastner are named as defendants in the case.

During cross-examination, Robinson countered that the email was sent after IlliquidX walked away from the joint venture. Altana, Brevent, Robinson, and Kastner have all denied the accusations. According to Altana’s lawyers, IlliquidX provided only a general idea about investing in distressed Venezuelan debt, which was part of the reason the partnership fell apart. They argue that IlliquidX’s claims do not involve any confidential or special trade secrets and that much of the information relied on by IlliquidX was public knowledge.

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