Crypto venture firm Shima Capital faces increased scrutiny as founder charged with investor fraud by US regulators. Internal email hints at possible wind-down. Screenshots shared by journalist reveal leadership shake-up and operational changes post-fraud charges. SEC alleges nearly $170 million raised with false claims about founder’s past performance.

Journalist shares screenshots of email from Gao to portfolio founders, indicating his resignation as managing director and plans for an orderly wind-down. Independent advisers to oversee wind-down process while finance team remains. Gao to continue supporting companies without management control. SEC and DOJ actions tied to personal conduct.

SEC complaint alleges Shima Capital misrepresented founder’s investment results and raised $11.9 million through SPV linked to BitClout tokens. Settlement proposal includes disgorgement and injunctive relief. Contrasts with Gao’s past statements on SEC compliance and offshore investments. Enforcement actions exclude portfolio companies.

Leaked memo clarifies that ongoing enforcement actions do not involve Shima Capital’s portfolio companies. Investments remain secure, founders advised to continue normal operations during wind-down. Shima Capital launched $200 million debut fund in 2022 with support from prominent backers. No response from company on recent developments.

Read more at Yahoo Finance: Leaked memo shows popular crypto firm may wind down