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3d ago

Shima Capital to Wind Down After SEC Fraud Suit Against Founder Yida Gao

Regulators say the fund’s marketing misled investors on past performance.

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Major web3 investor shima capital shuts down following sec fraud claims
Sec lawsuit puts shima capital’s future in question as wind down message surfaces

Overview

  • Shima Capital is initiating an orderly wind-down after the SEC sued founder Yida Gao for allegedly defrauding investors.
  • The SEC alleges Gao and the firm raised more than $158 million from 349 investors using a pitch deck that overstated his track record, including a claimed 90x return that was about 2.8x.
  • Regulators also accuse Gao of running an $11.9 million BitClout token SPV that generated $1.9 million in undisclosed personal profit.
  • The U.S. Attorney’s Office for the Northern District of California has unsealed a parallel criminal action against Gao.
  • A leaked email shared by a journalist said Gao would step down and that FTI advisers would oversee an orderly wind-down, though Yahoo Finance said it could not independently verify the message.