SEC Sues Shima Capital Founder Yida Gao Over Alleged Investor Fraud
The U.S. Securities and Exchange Commission has filed a lawsuit against Yida Gao, founder of crypto venture capital firm Shima Capital, accusing him of defrauding investors by misrepresenting fund performance. The complaint alleges Gao raised $158 million using falsified returns data in pitch documents.
Shima Capital, launched in 2021 with $200 million in assets, invested in notable blockchain projects including Berachain and Pudgy Penguins. Gao has resigned and announced plans to wind down the fund following regulatory action.
This case signals heightened SEC scrutiny of crypto investment vehicles as the agency continues its enforcement campaign across digital asset markets. The rapid closure of a prominent VC firm may temporarily dampen sentiment toward early-stage crypto projects seeking funding.
