Founder of Crypto VC Shima Capital Accused of Misappropriating Company Funds
CryptoNewsTerminal Staff07 Jun, 2024
Founder of Crypto VC Shima Capital Accused of Misappropriating Company Funds
Fortune Reports Shima Capital Founder's Alleged Misappropriation According to Fortune, a prominent business publication, Yida Gao, the founder of cryptocurrency venture capital firm Shima Capital, is facing allegations of misuse of company funds. Sources privy to the matter claimed that Gao established a clandestine offshore entity called ShimaB, which was not disclosed to investors or mentioned in the company's fund prospectus or updates. Fortune alleges that over 100 investments were funneled through ShimaB between mid-2021 and late 2022, despite regulations prohibiting the commingling of investor funds and investments in separate entities. The publication highlights potential conflicts of interest in scenarios involving the death of the CEO or liquidation of the fund, which could lead to disputes over asset ownership. Shima Capital has declined to comment on the matter. As per the firm's most recent Securities and Exchange Commission (SEC) filing, it manages approximately $158 million in assets. The allegations have raised concerns within the crypto industry, underscoring the importance of transparency and ethical practices in the management of investor funds.
