Crypto VC Shima Capital Winds Down After SEC Fraud Charges Against Founder
Shima Capital Management, a crypto venture firm that raised $200 million in 2021, is shutting down following fraud allegations by the SEC against its founder Yida Gao. The regulator claims Gao misrepresented investment returns to attract $158 million from 349 investors.
An internal email revealed Gao's resignation as managing director and plans for an orderly wind-down. The SEC complaint highlights a pitch deck falsely advertising a 90x return on a prior investment that actually yielded 2.8x. Gao allegedly dismissed discrepancies as clerical errors when confronted.
The charges extend to a separate $11.9 million scheme involving BitClout tokens, where Gao promised investors discounted purchases with downside protection. The case underscores growing regulatory scrutiny of crypto investment practices.
