A recent SEC lawsuit has attracted significant attention in the industry. According to crypto journalist Kate Irwin, the U.S. Securities and Exchange Commission has filed a lawsuit against crypto venture fund Shima Capital and its founder Yida Gao, accusing them of implementing fraudulent schemes targeting investors.

From the content revealed in internal emails, the situation appears to be quite serious. Gao has notified the founders of the invested projects that he will resign from Shima Capital and initiate the fund's liquidation process. In the email, he apologized for his "wrong decisions" — which essentially amounts to a tacit admission of the issues.

The background is as follows: Shima Capital was established in 2021 and is considered a relatively influential venture capital firm in the crypto space, managing approximately $200 million in assets. Such a fund facing SEC penalties not only reflects ongoing regulatory concerns about compliance in the crypto industry but also serves as a reminder to practitioners — investment fraud will be taken seriously in this industry, regardless of your size. For other VCs and project teams, this is also a warning: if you operate improperly, no matter how large your fund is, it won't protect you.