- US prosecutors have charged Taj Tarsha, the founder of the NFT startup Few and Far, with fraud.
- Investigators say he raised more than $10 million from at least 67 investors via SAFT agreements.
- The funds were allegedly spent on gambling, buying crypto, housing in Miami, and personal expenses.
Taj Tarsha, the founder of the NFT startup Few and Far, has been charged with securities fraud and wire fraud. According to US authorities, he raised more than $10 million from investors, promising to use the funds to develop an NFT marketplace, but instead used them for gambling, buying cryptocurrency, and personal spending.
Investor funds went to casinos, cryptocurrency, and personal expenses
According to the indictment, Tarsha founded Few and Far, which positioned itself as a developer of a decentralized marketplace for NFTs. Starting in February 2022, the startup sold investors Simple Agreements for Future Tokens (SAFTs), promising to issue its own FAR token in the future.
Investigators allege the company raised more than $10 million from at least 67 investors by selling rights to 95 million FAR tokens.
At the same time, prosecutors say that almost immediately after receiving the funds, Tarsha began using them for his own benefit. In particular, he spent money on:
- online casino gambling
- buying speculative crypto assets
- paying himself bonuses and an inflated salary
- making loan payments on a Miami condominium
- interior design and his DJ hobby.
Prosecutors noted that an audit in June 2023 uncovered evidence of misappropriation. After that, investigators say Tarsha assured investors that the bonuses were предусмотрены by the token sale terms, and that all transactions were carried out in the company’s interests.
He also allegedly concealed that nearly all of Few and Far’s staff had been laid off, and that marketplace development was being maintained by just one contractor to create the appearance of active work.
In May 2024, the company issued the FAR token, but according to investigators, it had virtually no market value and soon stopped trading.
Thirty-four-year-old Taj Tarshi has been charged with two counts — securities fraud and wire fraud. The maximum penalty for each count is up to 20 years in prison.
Prosecutors emphasized that the indictment contains only the allegations of the investigation, and the defendant is presumed innocent until proven guilty in court.
Earlier, we reported that in the US, three men were charged with attempting to seize bitcoin by force.
Сообщение NFT Startup Founder Accused of Misappropriating Over $10M in Investor Funds появились сначала на INCRYPTED.