CoinVoice recently learned that according to Fortune magazine, an investigation found that Yida Gao, founder of crypto venture capital Shima Capital, created a secret offshore entity and transferred assets belonging to his venture capital company to a company registered in his own name without the knowledge of other investors in the company. Attorney Eric Hess said this was a complete violation of the behavior allowed by the Investment Advisers Act.
Yida Gao has not been charged with any crime, and a representative for Shima Capital said the company does not comment on "regulatory matters of this nature." But according to an anonymous source, Yida Gao's poor performance and behavior clearly violated the U.S. Securities and Exchange Commission's (SEC) investor protection rules, putting it in a difficult position when it comes to raising further funds. A representative for Shima Capital said the company is not currently raising funds.
Shima Capital has also experienced a wave of departures from senior staff in recent months, including Chief Technology Officer Carl Hua, Head of Research Alexander Lin, who left earlier this year to start his own venture capital firm, and Chief Operating Officer and Head of Platform Hazel Chen. The departing executives did not respond to requests for comment. The latest SEC filing shows that its assets under management are about $158 million - a figure lower than the $200 million raised in 2022. [Original link]