Founder of NFT Startup Misuses $10 Million in Investor Funds

Founder of NFT Startup Charged with Fraud

Federal prosecutors have charged Taj Tarsha, the founder of NFT startup Few and Far, with securities fraud and wire fraud related to a $10 million fundraising initiative. The charges were filed in Manhattan, with allegations that Tarsha misappropriated investor funds for personal expenses including online gambling and cryptocurrency speculation.

Details of the Allegations

The U.S. Attorney’s Office for the Southern District of New York claims that Tarsha raised funds from at least 67 investors beginning in February 2022 through Simple Agreements for Future Tokens (SAFTs). These agreements allowed investors the right to receive tokens once they became available, specifically 95 million FAR tokens intended for a decentralized NFT marketplace.

According to prosecutors, Tarsha began misusing the funds almost immediately after the closure of the fundraising round. A June 2023 audit reportedly revealed the alleged misconduct. Rather than using the funds to develop the company’s marketplace, Tarsha is accused of directing one contractor to falsely present the marketplace as functional while laying off most employees.

Financial Misappropriation

Prosecutors outline that Tarsha misled investors about the use of funds, asserting that bonuses he received were related to token sale milestones when, in fact, the funds were diverted for his own use. Notable expenditures included a loan on a Miami condominium, interior design services, and costs related to his DJ activities. The FAR token was launched in May 2024 but quickly lost its value and ceased trading.

Legal Proceedings

Tarsha was arrested on June 6, and the ongoing case has been assigned to U.S. District Judge Lewis A. Kaplan. Each charge carries a maximum penalty of 20 years in prison if a conviction is secured.

As of the publication time, efforts to contact Tarsha via email outside U.S. working hours had not yielded a response.