position to take in terms of compliance with the Investment Advisers Act.”
In response to questions about the ShimaB entity, a representative for Shima Capital told Fortune that the firm does not comment on “regulatory matters such as this.”
Gao’s troubles come at a time when the crypto industry is facing increasing scrutiny from regulators and law enforcement. The SEC has ramped up enforcement actions against fraudulent crypto projects and unregistered securities offerings, and Congress is considering new legislation to regulate the industry.
For Gao, the road ahead is uncertain. While he may have once been a rising star in the world of crypto investing, his reputation has taken a hit. As his former colleagues depart for greener pastures and his firm struggles to raise further capital, Gao’s future in the industry remains in question. And as regulators continue to crack down on bad actors in the space, Gao may find himself facing more scrutiny in the months and years to come.