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Shima Capital Under Fire: Founder's Secret Asset Transfer Sparks Investor Protection Concerns

The crypto VC world just got messier. Shima Capital founder Yida Gao is under investigation for allegedly siphoning company assets into a personal offshore entity—a move that attorney Eric Hess says directly violates the Investment Advisers Act.

Here’s where it gets interesting: despite the current bull market, Shima Capital is bleeding talent. CTO Carl Hua and Research Director Alexander Lin both peaced out earlier this year to launch their own firms, followed by COO Hazel Chen. When top brass starts heading for the exits, it’s usually not a good sign.

The numbers tell the real story:

  • Assets under management: $158M (latest SEC filing)
  • Capital raised in 2022: $200M
  • That’s a ~21% decline despite the bull run

The firm has also gone radio silent on fundraising—no surprise given the regulatory heat and reputational damage. Gao hasn’t been charged yet, but the SEC investigation suggests serious questions about investor protection protocols.

Shima Capital’s rep declined to comment on ‘regulatory matters,’ which basically means ‘no comment.’ The silence speaks volumes.

This isn’t just drama—it’s a cautionary tale about governance in crypto VC. When founders have unchecked power over investor capital, things can spiral fast.

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