NFT Startup Founder Faces Charges Over Alleged Misuse of $10M Fundraising Proceeds

Federal prosecutors have accused Taj Tarsha of misleading investors and allegedly using company funds for personal spending rather than developing the NFT project they backed.

Manhattan federal prosecutors have charged Tarsha, the founder of NFT startup Few and Far, with securities fraud and wire fraud.

According to prosecutors, Tarsha diverted more than $10 million raised from investors toward online gambling, cryptocurrency trading, and personal expenses instead of using the money to build the company’s planned NFT marketplace.

The 34-year-old founder raised funds from at least 67 investors starting in February 2022 through Simple Agreements for Future Tokens (SAFTs), according to the U.S. Attorney’s Office for the Southern District of New York.

Under SAFT agreements, investors provide funding in exchange for the right to receive project tokens once they are issued. Few and Far investors were expected to receive 95 million FAR tokens while supporting development of the company’s decentralized NFT marketplace.

Prosecutors allege that Tarsha began misusing investor funds shortly after the fundraising round concluded.

The alleged misconduct was discovered during an internal audit in June 2023, according to the government’s statement. Prosecutors claim Tarsha misrepresented the purpose of bonuses he received, telling investors they were connected to token presale milestones, while also claiming company funds were being used to support development.

The indictment alleges that, instead, Tarsha reduced the company’s workforce significantly and instructed a contractor to make the marketplace appear operational despite limited progress.

Authorities also claim Tarsha spent investor money on various personal expenses, including a loan related to a Miami condominium, interior design costs, and expenses connected to his DJ activities.

Few and Far launched its FAR token in May 2024, but prosecutors said the asset quickly lost most of its value and eventually became inactive in trading markets.

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, each charge carries a maximum penalty of up to 20 years in prison.

Attempts by CoinDesk to reach Tarsha through email outside U.S. business hours had not received a response at the time of publication.