SEC lawsuit puts Shima Capital’s future in question as wind-down message surfaces
Screenshots suggest Shima Capital is winding down following an SEC lawsuit against its founder for alleged investor fraud.Summary
The future of crypto venture firm Shima Capital is uncertain after screenshots surfaced showing an internal email from founder Yida Gao announcing an "orderly wind-down" of the fund. This follows the SEC's Nov. 25 lawsuit, which charged Gao and Shima Capital with defrauding investors while raising nearly $170 million. The SEC alleged Gao inflated investment track records, claiming one investment yielded a 90x return when it was closer to 2.8x, and that he secretly profited $1.9 million from a BitClout token sale to a special purpose vehicle without disclosure.
The alleged wind-down email, shared by journalist Kate Irwin, stated Gao would step down as managing director, with independent advisers from FTI Consulting overseeing the process. Gao reportedly claimed the legal actions related to his personal conduct, not the portfolio companies, and that no fines were imposed on Shima Capital. Shima Capital, founded in 2021, launched its $200 million debut fund in 2022 and backed projects like Berachain and Pudgy Penguins.
(Source：Cointelegraph)