COINOTAG News reported on December 17 that Shima Capital, a crypto venture capital firm, is quietly winding down after a public enforcement action. Kate Irwin of Veda disclosed on X that the SEC filed a lawsuit against the firm and founder Yida Gao, alleging participation in a fraudulent scheme to mislead investors. An internal email shows Gao will resign and guide an orderly wind-down of the fund.
Founded in 2021 with roughly $200 million in assets, Shima Capital backed crypto ventures including Berachain, Monad, and Pudgy Penguins. The SEC‘s inquiry centers on promotional materials that allegedly overstated investment returns. Reports also indicate that Yida Gao moved funds to a wholly owned offshore entity without investor disclosure. After the suit, Yida Gao agreed to a settlement of about $4 million, marking a material withdrawal from active management.
Source: https://en.coinotag.com/breakingnews/shima-capital-winding-down-after-sec-fraud-lawsuit-as-yida-gao-resigns-and-pays-about-4-million-berachain-among-portfolio-investments
