On June 7th, according to Fortune magazine, an investigation found that Shima Capital founder Yida Gao created a secret offshore entity and transferred assets belonging to his venture capital firm to a company registered in his own name without the knowledge of other investors in the company. Attorney Eric Hess said this is a complete violation of the conduct allowed by the Investment Advisers Act. Yida Gao has not yet been charged with any crime, and a representative of Shima Capital said the company would not comment on "such regulatory matters." But according to an anonymous source, Yida Gao's poor performance and conduct clearly violated the Securities Exchange Commission's (SEC) investor protection rules, leaving it in trouble as it raises further funds. Despite the crypto market's boom, a representative of Shima Capital revealed that the company is not currently raising funds. Shima Capital has also experienced a wave of departures from senior staff in recent months, including chief technology officer Carl Hua, head of research Alexander Lin, who left earlier this year to start his own venture capital firm, and chief operating officer and platform head Hazel Chen. The departing executives did not respond to requests for comment. Meanwhile, Shima Capital appears to be struggling despite the current bull market in cryptocurrency. Its latest SEC filings show it has about $158 million in assets under management - down from the $200 million it raised in 2022.