PANews reported on December 17th that Kate Irwin, Head of Content at Veda, disclosed on the X platform that crypto venture capital firm Shima Capital is quietly ceasing operations. Three weeks ago, the U.S. SEC filed a lawsuit against the company and its founder, Yida Gao, accusing them of "participating in a fraudulent scheme" to deceive investors. According to an email sent to the founders of portfolio companies, Yida Gao is resigning and closing the fund, stating in the email, "I deeply regret my wrong decision and apologize for letting everyone down."

Founded in 2021, Shima Capital has $200 million in funds and has invested in several crypto projects, including Berachain, Monad, and Pudgy Penguins. The SEC accused Yida Gao of exaggerating investment returns in promotional materials, claiming a 90x return on one investment when the actual return was only 2.8x. Furthermore, Fortune magazine reported that Yida Gao transferred investment funds to a wholly-owned offshore entity without disclosing this to investors. The day after the SEC filed the lawsuit, Yida Gao agreed to pay approximately $4 million in settlement.