Screenshots of an internal email outlining an “orderly wind-down” at Shima Capital surfaced online on Wednesday, days after the U.S. Securities and Exchange Commission sued the crypto venture firm and its founder, Yida Gao, according to a report that referenced screenshots shared by journalist Kate Irwin.
The crypto VC firm that quietly went away: Shima Capital.
3 weeks ago, the SEC filed a complaint against Shima Capital and its founder Yida Gao, alleging he "engaged in a scheme to defraud" certain investors.
Screenshots of an email Gao sent to portfolio company founders,… pic.twitter.com/9Q5xQ2g6wU
— Kate Irwin (@kateirwin) December 16, 2025
The report says the SEC charged Shima Capital Management LLC and Gao on Nov. 25, alleging false and misleading statements while raising almost $170 million for Shima Capital Fund I between 2021 and 2023. Regulators allege Gao overstated performance, including touting a 90x return versus about 2.8x, and also cited an SPV tied to BitClout tokens where Gao allegedly retained about $1.9 million in undisclosed profits.
In the purported message to portfolio founders, Gao is described as stepping down as managing director, with FTI Consulting and FTI Capital Management overseeing an orderly process while Shima’s finance team remains in place. The next watch item is whether stakeholders independently confirm the wind-down mechanics as the SEC case moves through court.
Source: Kate Irwin (X post).
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