According to PANews, a recent investigation has revealed that Yida Gao, the founder of Shima Capital, has allegedly created a secret offshore entity and transferred assets belonging to his venture capital firm into a company registered under his name, unbeknownst to other investors. This action is in direct violation of the Investment Advisers Act, according to attorney Eric Hess.
Yida Gao has not been charged with any crime, and a representative from Shima Capital has declined to comment on 'such regulatory matters'. However, an anonymous source has disclosed that Gao's poor performance and behavior clearly violate the investor protection rules of the U.S. Securities and Exchange Commission (SEC), causing difficulties in raising further funds. Despite the thriving crypto market, a representative from Shima Capital has revealed that the company is not currently raising funds.
In recent months, Shima Capital has also experienced a wave of high-level employee departures, including Chief Technology Officer Carl Hua and Research Director Alexander Lin, who left earlier this year to start their own venture capital firms, as well as Chief Operating Officer and Platform Director Hazel Chen. The departing executives have not responded to requests for comment. Meanwhile, despite the current bull market in cryptocurrencies, Shima Capital appears to be struggling. Its latest SEC filing shows that it manages assets of approximately $158 million, a figure lower than the $200 million raised in 2022.
