Shima Capital founder resigns due to fraud allegations and gradually winds down fund operations

According to Odaily, Kate Irwin posted on X that crypto venture capital firm Shima Capital has quietly faded out. Three weeks ago, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Shima Capital and its founder Yida Gao, accusing him of “engaging in a scheme to defraud” certain investors. A source provided her with a screenshot of an email Yida Gao sent to portfolio company founders, showing that Yida Gao is resigning from his position and gradually winding down the fund’s operations. The email stated: “I deeply regret the wrong decisions I made and apologize to you for letting you down.” Shima Capital was founded in 2021 with an initial fund of $200 million and has invested in several crypto projects including Berachain, Monad, Pudgy Penguins, Sleepagotchi, and Gunzilla.