According to cryptocurrency journalist Kate Irwin, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit three weeks ago against cryptocurrency investment fund Shima Capital and founder Yida Gao, accusing them of orchestrating a scheme to defraud investors.
Internal emails reveal that Yida Gao informed founders within the portfolio that he planned to resign and begin the process of downsizing and dissolving the fund’s operations. This move comes amid ongoing SEC litigation, raising concerns about the future of Shima Capital.
Founded in 2021, Shima Capital currently manages approximately $200 million in assets. The fund has invested in several prominent projects in the cryptocurrency space, such as Berachain, Monad, and the NFT collection Pudgy Penguins. The lawsuit could add further legal pressure on crypto investment funds in the U.S.
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SEC sues Shima Capital for investor fraud
According to cryptocurrency journalist Kate Irwin, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit three weeks ago against cryptocurrency investment fund Shima Capital and founder Yida Gao, accusing them of orchestrating a scheme to defraud investors.
Internal emails reveal that Yida Gao informed founders within the portfolio that he planned to resign and begin the process of downsizing and dissolving the fund’s operations. This move comes amid ongoing SEC litigation, raising concerns about the future of Shima Capital.
Founded in 2021, Shima Capital currently manages approximately $200 million in assets. The fund has invested in several prominent projects in the cryptocurrency space, such as Berachain, Monad, and the NFT collection Pudgy Penguins. The lawsuit could add further legal pressure on crypto investment funds in the U.S.