Screenshots of an internal email reveal plans to wind down Shima Capital after SEC sues the firm and founder Yida Gao for investor fraud. SEC alleges false statements and inflated investment track record, with Gao personally gaining $1.9 million from undisclosed profits related to BitClout tokens. Gao allegedly stepping down as managing director.

Shima Capital, launched in 2022 with a $200 million fund, invested in early-stage blockchain startups like Humanity Protocol and Shiba Inu. Gao’s alleged email to portfolio founders mentions an “orderly wind-down” overseen by independent advisers from FTI Consulting. No fines imposed on the company, and Gao to remain involved with portfolio support.

Read more at Cointelegraph: SEC Lawsuit Puts Shima Capital’s Future in Question After Wind-Down Email