SEC Lawsuit Drives Shima Capital Towards Discreet Closure

SEC Allegations: The SEC has accused Shima Capital and its founder Yida Gao of misleading investors by making false claims about investment returns, raising nearly $170 million through inaccurate fundraising disclosures.

Founder Resignation: Following the lawsuit, Yida Gao stepped down and began winding down the $200 million crypto venture firm, expressing regret over his decisions in communications with partners.

Settlement Agreement: Gao has agreed to a proposed settlement of approximately $4 million, which includes disgorgement and bans, as the SEC outlined violations of securities laws.

Ongoing Investigations: The SEC's case is part of a broader investigation involving parallel criminal charges, with the U.S. Attorney’s Office and the FBI also involved in the case against Gao.