Derived from 36 Crypto, Shima Capital, a blockchain-focused venture firm, is reportedly preparing to wind down following allegations of investor fraud by the U.S. Securities and Exchange Commission (SEC). The SEC filed a lawsuit on December 3, accusing the firm and its founder, Yida Gao, of misleading investors and inflating returns. Gao has stepped down as managing director and informed portfolio company founders of the firm’s planned wind-down. The SEC claims Gao misrepresented his investment track record and retained $1.9 million in undisclosed profits from a BitClout token sale. Shima Capital has enlisted FTI Consulting and FTI Capital Management to oversee the wind-down process.
Shima Capital to Wind Down After SEC Fraud Allegations
36CryptoShare
Summary
Shima Capital, a blockchain-focused venture firm, is preparing to wind down after the SEC accused it of investor fraud. The U.S. regulator filed a lawsuit on December 3, alleging that founder Yida Gao misrepresented returns and retained $1.9 million in profits from a BitClout token sale. Gao has stepped down and informed founders of the firm’s planned closure. Shima has enlisted FTI Consulting to manage the process. The case highlights ongoing regulatory scrutiny, including efforts in Countering the Financing of Terrorism and compliance with capital gains tax rules.
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