TLDR:
- Yida Gao, a rising star in blockchain, raised $200 million for Shima Capital with backers like Bill Ackman and Galaxy.
- Gao is facing legal ramifications for allegedly funneling investments into a secret offshore entity he owned without disclosing it to investors.
In a new investigation by Leo Schwartz, it was revealed that Yida Gao, a crypto wunderkind, raised $200 million for his fund, Shima Capital, with the backing of investors like Bill Ackman and the Galaxy firm. Gao, who was seen as a rising star in the blockchain industry, taught a course on crypto at MIT and quickly became one of the most active investors in the space. However, trouble started brewing behind the scenes when it was discovered that Gao allegedly funneled investments into a secret offshore entity he owned without disclosing it to investors. This raised concerns of potential breaches of the Investment Advisers Act, as experts pointed out. The investigation also found that Shima has alienated backers, with Galaxy redeeming its investment and others raising alarm bells. Gao and Shima are now facing possible legal penalties for their actions.
