The founder of Shima Capital resigned amid fraud allegations and is gradually ending the fund's operations.

Odaily Planet Daily reports that Kate Irwin posted on the X platform that cryptocurrency venture capital firm Shima Capital has quietly withdrawn from the market. Three weeks ago, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Shima Capital and its founder, Yida Gao, accusing him of "participating in a scheme to defraud" specific investors. An insider provided screenshots of emails sent by Yida Gao to the founders of portfolio companies, showing that Gao was resigning and gradually ending the fund's operations. The email stated, "I deeply regret the wrong decision I made and apologize to you for letting me down." Shima Capital was founded in 2021 with an initial capital of $200 million and had invested in several cryptocurrency projects, including Berachain, Monad, Pudgy Penguins, Sleepagotchi, and Gunzilla.