Federal prosecutors have charged Taj Tarsha, founder of NFT startup Few and Far, with allegedly deceiving investors and misusing funds raised for the company.
The Manhattan U.S. Attorney’s Office accused Tarsha of securities fraud and wire fraud, alleging that he diverted more than $10 million from investors toward personal expenses, online gambling, and cryptocurrency speculation instead of using the funds to develop the company’s NFT marketplace.
Prosecutors said Tarsha collected the investment through Simple Agreements for Future Tokens (SAFTs) from at least 67 investors beginning in February 2022. Through these agreements, investors were promised future access to 95 million FAR tokens once they were issued as part of the company’s planned decentralized NFT marketplace.
According to the indictment, Tarsha allegedly began misusing the raised capital soon after the fundraising round was completed.
Authorities said the suspected misuse of funds was uncovered during a company audit in June 2023. Prosecutors claim Tarsha provided misleading information to investors, including statements that certain bonuses were connected to token presale targets and that company resources were being directed toward advancing the project.
Instead, prosecutors allege that Tarsha had already reduced the company’s workforce and instructed a contractor to create the impression that the NFT marketplace was operating and progressing.
The government further claims that investor funds were used for personal purposes, including payments related to a Miami condominium loan, interior design work, and expenses associated with Tarsha’s DJ activities.
Few and Far eventually launched its FAR token in May 2024, but prosecutors said the token rapidly lost value and later became effectively inactive.
Tarsha, a Miami resident, was arrested on June 6 and the case has been assigned to U.S. District Judge Lewis A. Kaplan. If found guilty, each charge could carry a maximum sentence of 20 years in prison.
CoinDesk attempted to contact Tarsha by email outside normal U.S. business hours but had not received a response at the time of reporting.
