Crypto VC Shima Capital to shut down following SEC fraud lawsuit

Crypto venture capital firm Shima Capital is effectively shutting down after the U.S. Securities and Exchange Commission (SEC) sued the firm and its founder, Yida Gao, for fraud, Decrypt reporter Kate Irwin stated on X. Irwin reported that Gao announced in an email to portfolio company founders that he would step down as managing partner and liquidate the fund. Shima Capital, which launched in 2021 with $200 million in capital, has invested in numerous crypto projects, including Berachain, Monad, and Pudgy Penguins. The SEC's allegations include claims that the firm secretly established an offshore entity and misappropriated assets from its venture fund without informing investors.