Shima Capital founder suspected of embezzlement, and several executives have resigned

On June 7th, according to Fortune magazine, an investigation found that Shima Capital founder Yida Gao created a secret offshore entity and transferred assets belonging to his venture capital firm to a company registered in his own name, without the knowledge of other investors. Lawyer Eric Hess said this completely violates the behavior allowed by the Investment Advisers Act.

Yida Gao has not been charged with any crimes, and a representative of Shima Capital said the company will not comment on "such regulatory matters." However, according to an anonymous source, Yida Gao's poor performance and behavior clearly violates the Securities and Exchange Commission's (SEC) investor protection rules, putting the company in trouble when raising further funds. Despite the flourishing cryptocurrency market, a representative of Shima Capital revealed that the company is currently not fundraising.

Shima Capital has also experienced a wave of senior staff departures in recent months, including Chief Technology Officer Carl Hua, Research Director Alexander Lin, who left earlier this year to start their own venture capital firm, and Chief Operating Officer and Platform Director Hazel Chen. The departing executives did not respond to requests for comment. Meanwhile, despite the current bull market in cryptocurrency, Shima Capital seems to be struggling. Its latest SEC filing shows that it manages assets of approximately $158 million, which is lower than the $200 million raised in 2022.