Another crypto VC quietly exits | Shima Capital is ending operations

Industry sources confirm:
The crypto venture capital firm Shima Capital, which has invested in Berachain, #Monad , Pudgy Penguins, is quietly shutting down.
The trigger is straightforward—
Three weeks ago, the SEC officially sued Shima Capital and its founder Yida Gao.
The SEC's core allegations include 👇

Serious exaggeration of investment returns in fundraising materials
👉 claimed 90x, but actual returns were only about 2.8x

Transferring fund assets to offshore entities fully controlled by the founder

Key financials and related-party transactions were not disclosed to investors

And more critically:
Emails have been sent to the founders of invested projects, where Yida Gao stated 👇
resigned from his position and decided to close the fund
Expressing regret over his wrong decision and apologizing to everyone
According to Fortune magazine, the day after the SEC lawsuit,
Yida Gao agreed to pay approximately $4 million to settle with regulators.
📉 Interpretation of signals:

The bull market VC myth is being gradually cleared out

The narrative of “halo track record + high returns” is no longer accepted by regulators

For project teams, VC endorsements ≠ safety net

The market is reshuffling,
Not only projects, but capital itself is also being eliminated.
This round,
May just be the beginning.