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Shima Capital to Wind Down Operations Amid SEC Lawsuit

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Shima Capital is closing amid an SEC lawsuit that accuses its founder, Yida Gao, of misleading investors with exaggerated returns. In an email to founders, Gao confirmed he is stepping down and liquidating the fund. The SEC alleges he inflated returns from 2.8x to 90x in promotional materials and siphoned funds to an offshore entity. A $4 million settlement was reached the day after the suit was filed. As regulatory scrutiny intensifies under Countering the Financing of Terrorism laws, and capital gains tax implications loom for affected investors, the firm’s dissolution marks another blow to crypto VCs under SEC pressure.
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