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The U.S. Securities and Exchange Commission sued Gao and Shima Capital on November 25, accusing them of false claims about past returns—like boasting 60x gains on a social analytics token—and undisclosed benefits from a special vehicle. Gaming entrepreneur Chris Heatherly, whose startup had Shima as lead investor, described Gao's advice as focused on bots, narratives, and tokens, which he said distracted his team and hurt the company amid market challenges. Other founders reported similar pushes for quick token launches, while investors note the case erodes trust in crypto venture firms; Shima has not confirmed rumors of winding down or Gao stepping down.

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by thatalexpalmer.eth437 🥝 • 7mo • x.com
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Never heard of these people tbh. But what‘s interesting is that the SEC is still enforcing rules in crypto, which runs kinda counter to some political narratives
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I have heard of these people and declined an intro request in the past. SEC enforces investment rules and generally is an agency that's meant to protect investors from information asymmetries - political narratives aside, that has never changed. They're not aggressively and indiscriminately going after devs anymore. Shima wasn't devs, they were a third tier VC fund with no morals.
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