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Citadel Securities valued at $22 billion after investment from Sequoia, Paradigm

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Citadel’s founder and CEO Ken Griffin

Reuters| Reuters

Citadel Securities announced Tuesday that Sequoia Capital, a venture capital firm, and Paradigm, a crypto-focused investor company made a $1.15billion minority investment. This gives the market maker created by Ken Griffin nearly $22 billion in value.

Sequoia was the leader of this funding round. According to the company, Alfred Lin, who is a Sequoia partner, will be joining Citadel Securities’ board.

This two-decade old company offers trading services to banks, brokers-dealers, hedge funds, asset managers and bankers. More than 1,600 clients are served by its institutional division.

Chicago-based firm has seen a rise in trading activity since the outbreak of the pandemic. This was partly due to retail investors who have flocked to mobile trading apps.

After being closely examined by U.S. regulators and lawmakers, Citadel Securities was deemed to be in compliance with all applicable laws. Robinhood MarketsSeveral brokers also restricted trading in shares GameStopIn January of last year.

These restrictions, which angered some retail investors, came following a dramatic rally that caused a “short squeeze,” leading Wall Street hedge funds to suffer billions in losses.

After the hedge fund had suffered huge losses, Citadel Securities made a $2B investment in Melvin Capital.

Citadel Securities denied involvement in any decision taken by the brokers.

According to Wall Street Journal who first reported this deal, the company already has presences in more than fifty countries. It plans to utilize the most recent capital to expand internationally.

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