From $10M Raise to Criminal Charges: NFT Founder Faces Investor Fund Allegations

Federal prosecutors have accused Taj Tarsha, founder of NFT startup Few and Far, of deceiving investors and allegedly using funds raised for the project on personal expenses rather than company development.

The U.S. Attorney’s Office in Manhattan charged Tarsha with securities fraud and wire fraud, alleging that he misdirected more than $10 million in investor capital intended to build the company’s decentralized NFT marketplace.

According to prosecutors, Tarsha used the funds for online gambling, cryptocurrency investments, and personal spending instead of advancing the Few and Far platform.

Tarsha raised the money from at least 67 investors starting in February 2022 through Simple Agreements for Future Tokens (SAFTs), which allowed backers to receive future tokens once the project launched.

Investors who participated in the fundraising were expected to receive 95 million FAR tokens as part of their agreement to support the development of Few and Far’s planned NFT marketplace.

Prosecutors allege that Tarsha began diverting the funds shortly after the fundraising period ended.

The alleged activity was uncovered during an audit conducted in June 2023, according to court documents. Authorities claim Tarsha provided false updates to investors, including statements that bonuses paid to him were linked to token presale milestones and that company funds were being used to develop the marketplace.

The indictment claims that the company’s actual condition was different, alleging Tarsha had dismissed most employees and instructed a contractor to make the marketplace appear active despite limited progress.

Authorities also allege that Tarsha spent investor funds on personal matters, including a loan connected to a Miami condominium, home design services, and expenses related to his DJ career.

Few and Far released its FAR token in May 2024, but prosecutors said the token quickly collapsed in value and eventually lost meaningful market activity.

Tarsha, who is based in Miami, was arrested on June 6. The case has been assigned to U.S. District Judge Lewis A. Kaplan. If convicted, he could face up to 20 years in prison for each charge.

CoinDesk contacted Tarsha by email for comment outside U.S. business hours but had not received a response by publication time.