The post SEC Alleges Fraud in Shima Capital’s Crypto Fundraising, Founder Yida Gao Resigns appeared on BitcoinEthereumNews.com.

The SEC sued Shima Capital founder Yida Gao for alleged investor fraud, claiming misleading fundraising claims that raised nearly $170 million. Gao resigned shortly after, leading to the fund’s wind-down and a proposed $4 million settlement including disgorgement and bans. SEC alleges Shima Capital misled investors with false return claims in pitch decks, inflating a 2.8x return to 90x. Gao stepped down three weeks post-lawsuit, emailing portfolio companies about winding down the $200 million crypto venture firm. Proposed settlement requires Gao to pay $3.92 million in disgorgement plus interest, with parallel criminal charges unsealed. Discover the details of the Shima Capital SEC lawsuit against Yida Gao for investor fraud. Learn about the allegations, resignation, and $4M settlement in this crypto news update. Stay informed on regulatory actions in the industry. What is the Shima Capital SEC Lawsuit? The Shima Capital SEC lawsuit accuses founder Yida Gao and the firm of securities fraud through misleading investor disclosures during fundraising from 2021 to 2023. Filed on November 25, 2025, in the U.S. District Court for the Northern District of California, the complaint details how Gao allegedly misrepresented investment returns and hid profits, raising over $169.9 million. This regulatory action highlights ongoing scrutiny of crypto venture firms for compliance with securities laws. How Did Yida Gao Allegedly Mislead Investors? The SEC’s complaint outlines several key misstatements in Shima Capital’s pitch materials. For instance, Gao presented a prior investment as yielding a 90 times return on capital, but the actual figure was only 2.8 times, according to agency calculations based on verified financial records. This exaggeration aimed to attract more funding for the firm’s crypto-focused portfolio. Additionally, after learning of an impending media report on these discrepancies, Gao contacted investors and dismissed them as clerical errors, the SEC alleges. In a separate incident involving…

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Filed under: News - @ December 18, 2025 2:25 am