Taj Tarsha, the 34-year-old Miami-based founder of NFT startup Few and Far, was indicted by the US Attorney's Office for the Southern District of New York on one count of securities fraud and one count of wire fraud. The charges, announced Wednesday, accuse Tarsha of stealing more than $10 million raised from investors who believed their funds would build a decentralized NFT marketplace. Prosecutors allege Tarsha instead diverted the money to personal expenses including online gambling, speculative cryptocurrency trades, a Miami condominium loan, interior design work, and his DJ hobby. The case has been assigned to US District Judge Lewis A. Kaplan, who in March 2024 sentenced FTX founder Sam Bankman-Fried to 25 years for stealing over $8 billion. Each count against Tarsha carries a maximum penalty of up to 20 years.
Tarsha Raised $10 Million Through SAFT Token Sales Starting February 2022
Tarsha began raising money in February 2022 using Simple Agreements for Future Tokens (SAFTs), contracts that allow investors to pay upfront for tokens delivered later. According to the indictment, he sold 95 million FAR tokens to at least 67 backers at approximately 11 cents per token, averaging close to $150,000 per investor. The NEAR Foundation announced a grant and partnership with Few and Far in September 2022, lending credibility to the project. Tarsha owned every share of the company. Prosecutors allege the money began leaving almost immediately after receipt, moving to an online casino and speculative crypto trades.
June 2023 Audit Revealed Missing Funds and Hidden Bonuses
An audit conducted in June 2023 identified the missing investor funds. By that time, prosecutors say Tarsha had paid himself nearly $1 million through two hidden bonuses that he concealed from investors and a co-founder. He also drew a salary he privately described as unreasonable given the company's "zero revenue." Tarsha then falsely told investors the bonuses matched preset presale targets and claimed every remaining dollar was still needed for operations. Nearly all staff had departed by the time of the audit, with one contractor instructed to produce work that only appeared to be active development. Spending continued for 11 months after the audit, covering cryptocurrency purchases, a Miami condominium loan, interior design work, and expenses related to his DJ hobby.
FAR Token Launched Worthless in May 2024 After 27-Month Delay
The FAR token finally launched in May 2024, 27 months after the first investor payment. The token arrived worthless and stopped trading shortly after launch. The Few and Far website remains online, still advertising FAR as live on mainnet. Deputy US Attorney Sean S. Buckley stated in a press release: "As alleged, Taj Tarsha raised millions of dollars from investors by promising that their investments would be used to build a marketplace for non-fungible tokens, but he instead breached their trust by stealing those funds for his own personal benefit."
US District Judge Lewis A. Kaplan Assigned to Fraud Case
The case sits with US District Judge Lewis A. Kaplan, who in April rejected Bankman-Fried's retrial bid. Kaplan sentenced the FTX founder to 25 years in March 2024 for stealing over $8 billion. Tarsha is accused of taking approximately one eight-hundredth of that sum. The FBI's New York office investigated the case. The charges are allegations, and Tarsha is presumed innocent unless convicted. Prosecutors must now tie each purchase back to an investor deposit.
FAQ
What did Taj Tarsha do with the $10 million raised from investors?
Prosecutors allege Tarsha diverted investor funds to personal expenses including online gambling, speculative cryptocurrency trades, a Miami condominium loan, interior design work, and his DJ hobby, rather than using the money to build the promised decentralized NFT marketplace.
When did the FAR token launch and what was its outcome?
The FAR token launched in May 2024, 27 months after the first investor payment in February 2022. The token arrived worthless and stopped trading shortly after launch.
What charges does Taj Tarsha face and what are the potential penalties?
Tarsha faces one count of securities fraud and one count of wire fraud. Each count carries a maximum penalty of up to 20 years.
