Federal authorities have charged Taj Tarsha, the founder of the NFT startup Few and Far, with committing securities and wire fraud linked to a $10 million fundraising effort.
Prosecutors allege that Tarsha misappropriated over $10 million raised from investors for personal use, including online gambling, cryptocurrency trading, and other expenses, rather than utilizing the funds to develop the company’s NFT marketplace.
According to the U.S. Attorney's Office for the Southern District of New York, the 34-year-old entrepreneur raised these funds from at least 67 investors starting in February 2022 via Simple Agreements for Future Tokens (SAFTs). These agreements entitle investors to receive tokens once they become available. Investors in Few and Far were promised 95 million FAR tokens to support the creation of a decentralized NFT marketplace.
Prosecutors assert that Tarsha began misusing investor funds shortly after the fundraising concluded.
The alleged financial misconduct was revealed during an internal audit conducted in June 2023. Prosecutors claim that Tarsha misled investors by suggesting that bonuses he received were linked to token presale achievements and claimed that company funds were being utilized to further the project.
In reality, the indictment states, he had terminated most employees while instructing a contractor to create a façade that the marketplace was operational.
The government also accused Tarsha of spending investor money on a loan for a condominium in Miami, decorating services, and expenses related to his DJ activities.
Although Few and Far launched the FAR token in May 2024, prosecutors indicated that it quickly became virtually worthless and ceased trading shortly thereafter.
Tarsha was arrested on June 6, and the case is currently under the jurisdiction of U.S. District Judge Lewis A. Kaplan. Each charge could result in a maximum prison sentence of 20 years if he is found guilty.
Attempts to reach Tarsha via email outside of U.S. business hours were unsuccessful by the time of publication.