BlockBeats News, December 17, Veda's Head of Content Kate Irwin revealed on the X platform that the crypto venture capital firm Shima Capital is quietly winding down its 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 will resign from his position and gradually wind down the fund's operations, stating in the email: "I deeply regret my own misguided decisions and apologize for disappointing everyone."Founded in 2021, Shima Capital had $200 million in funds and had invested in various crypto projects such as Berachain, Monad, Pudgy Penguins, among others. The SEC accused Yida Gao of exaggerating investment returns in promotional materials, claiming a certain investment had a return of 90x when it was actually only 2.8x. Additionally, Fortune magazine reported that Yida Gao transferred investment funds to his wholly-owned offshore entity without disclosing it to investors. The day after the SEC filed the lawsuit, Yida Gao agreed to pay a settlement of approximately $4 million.

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