Crypto▼ Bearish
NFT Founder Charged With $10M Fraud in Token Sale Case
Taj Tarsha, founder of NFT startup Few and Far, faces securities and wire fraud charges for allegedly diverting $10M from investors to gambling, real estate, and DJ activities.
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Federal prosecutors charged NFT startup founder Taj Tarsha with securities fraud and wire fraud, alleging he diverted more than $10 million raised from nearly 70 investors into gambling, digital-asset speculation, and a loan for a Miami condominium. The 34-year-old Miami resident founded Few and Far Limited, pitched as a decentralized NFT marketplace. Each charge carries up to 20 years in prison. Tarsha has not been convicted.
Prosecutors said Few and Far raised the money by selling 95 million tokens through Simple Agreements for Future Tokens, or SAFTs. Investors paid for contractual rights to receive FAR tokens later, expecting their capital to fund development of the NFT platform. According to the charges, Tarsha used investor funds for personal expenses almost immediately after the fundraising closed. The alleged misuse included gambling, speculative digital-asset purchases, a loan tied to a Miami condominium, interior design costs, and his DJ activities.
The alleged diversion came to light more than a year after Tarsha began soliciting investments, when an audit uncovered discrepancies in the company's finances. Prosecutors also claimed he misled investors by stating employee bonuses were linked to predetermined FAR token presale targets. Behind the appearance of growth, the company had reportedly dismissed nearly its entire workforce. Authorities said Tarsha instructed the remaining contractor to perform tasks that merely created the impression that marketplace development was continuing.