Crypto venture capital firm Shima Capital announces closure after SEC lawsuit; founder agrees to pay $4 million settlement

[Chain Wen] The crypto venture capital circle is boiling over. Shima Capital, which once managed $200 million in funds and invested in star projects like Berachain, Monad, Pudgy Penguins, and more, is now quietly coming to an end.

The incident stems from a lawsuit filed three weeks ago by the US SEC against the company and founder Yida Gao—alleging fraud. Specifically, Yida Gao exaggerated in promotional materials, claiming an investment could multiply 90 times, but in reality, it only increased 2.8 times. Even more outrageous, he moved the fund’s capital to offshore entities under his own name, completely unaware to the investors.

The most ironic part is that once the lawsuit was filed, Yida Gao quickly backed down. In an email to the founders of the invested companies, he admitted, “I deeply regret my decisions and have let everyone down.” He then officially resigned and shut down the fund. Just one day after the SEC filed the lawsuit, he agreed to pay about $4 million in settlement.

Shima Capital was founded in 2021, and initially looked promising, but it ended like this. This incident also serves as a reminder to the entire industry—when doing investment and venture capital, honesty is the safest, and schemes are the easiest way to get into trouble.