The SEC has filed a lawsuit against the cryptocurrency venture capital firm Shima Capital and its founder.

BlockBeats News, December 17th, Veda's Head of Content Kate Irwin revealed on the X platform that the crypto venture capital firm Shima Capital is quietly winding down its operations. Three weeks ago, the US SEC sued the company and its founder Yida Gao, accusing them of "participating in a fraudulent scheme" to deceive investors. According to an email sent to the founders of portfolio companies, Yida Gao will resign from his position and gradually wind down the fund's operations, stating in the email: "I deeply regret my wrong decisions and apologize for disappointing everyone."

Established in 2021, Shima Capital has $200 million in funds and has invested in various crypto projects such as Berachain, Monad, Pudgy Penguins, among others. The SEC accused Yida Gao of overstating investment returns in promotional materials, claiming a return of 90x on a certain investment, while the actual return was only 2.8x. Furthermore, Fortune magazine reported that Yida Gao transferred investment funds to a wholly-owned offshore entity without disclosing it to investors. The day after the SEC filed the lawsuit, Yida Gao agreed to pay approximately $4 million in a settlement.