Cryptocurrency venture capital firm Shima Capital is being sued by the U.S. SEC, accused of "defrauding specific investors."

According to crypto journalist Kate Irwin, cryptocurrency venture capital firm Shima Capital and its founder Yida Gao have been sued by the U.S. Securities and Exchange Commission (SEC), accused of "defrauding specific investors." According to internal emails from informed sources, Gao has announced his resignation and the liquidation of the fund. In his letter, he wrote: "I deeply regret making the wrong decision and apologize for letting you down."

Shima Capital manages approximately $200 million and has invested in several crypto projects, including Berachain, Monad, and Pudgy Penguins.