A recent investigation has revealed that Yida Gao, the founder of Shima Capital, allegedly created a secret offshore entity and transferred assets belonging to his venture capital firm into a company registered under his name, unbeknownst to other investors. This action is in direct violation of the Investment Advisers Act, according to attorney Eric Hess.

The investigation has raised concerns about the transparency and accountability of Shima Capital, particularly in light of the company's poor performance and behavior. An anonymous source has disclosed that Gao's actions clearly violate the investor protection rules of the U.S. Securities and Exchange Commission (SEC), causing difficulties in raising further funds.

Despite the thriving crypto market, Shima Capital appears to be struggling. Its latest SEC filing shows that it manages assets of approximately $158 million, a figure lower than the $200 million raised in 2022. The company has also experienced a wave of high-level employee departures, including Chief Technology Officer Carl Hua and Research Director Alexander Lin, who left earlier this year to start their own venture capital firms.

The departing executives have not responded to requests for comment, leaving investors and stakeholders wondering about the future of Shima Capital. The company's representative has declined to comment on 'such regulatory matters', but an anonymous source has revealed that Gao's poor performance and behavior are causing difficulties in raising further funds.

In conclusion, the recent investigation into Shima Capital's activities has raised serious concerns about the company's transparency and accountability. The alleged transfer of assets to a personal company by Yida Gao, the founder, is a clear violation of the Investment Advisers Act and has raised questions about the company's future. The departure of high-level executives and the company's struggling performance have also raised concerns about the company's ability to continue operating effectively.