Shima Capital Effectively Moving Toward Dissolution…Begins Internal Wind-Down After U.S. SEC Lawsuit

Crypto venture capital firm Shima Capital appears to have effectively entered dissolution proceedings following a lawsuit by the U.S. Securities and Exchange Commission (SEC). Founder and CEO Yida Gao reportedly stepped down from day-to-day management, sending apology messages to investors and portfolio projects.

On the 17th (local time), crypto reporter Kate Irwin published material on social media X indicating that the SEC filed a civil suit against Shima Capital and Yida Gao about three weeks ago. The SEC alleges that Gao was involved in a scheme that constitutes fraud against some investors. Irwin, a journalist who has worked at Decrypt and Blockworks, said she confirmed the matter through anonymous sources.

According to email screenshots obtained by Irwin, Gao informed founders of Shima Capital portfolio companies that she was stepping down from her position and winding down the fund. In the email, Gao reportedly said, "I deeply regret my wrong decisions and apologize for disappointing you."

Shima Capital is a crypto-focused venture capital firm launched in 2021 with $200 million. According to its official website, it invested in multiple Web3 projects such as Berachain, Monad, Pudgy Penguins, Sleepagotchi, and Gunzilla, building a presence in the market.

However, Shima Capital's external activities have reportedly been effectively suspended since the SEC suit. With Gao's resignation and the plan to wind down the fund shared internally, Shima Capital is being interpreted as quietly withdrawing from the market.

The case is also said to potentially affect the overall crypto venture investment industry. Analysts say that, with regulators increasing scrutiny, discussions about responsibility around fund management and investor protection may resurface. Shima Capital and Yida Gao have not issued an official statement regarding the SEC lawsuit to date.