NFT Founder Charged With Fraud After Diverting $10M to Gambling

Woofun AI reports that Federal prosecutors in Manhattan have charged Taj Tarsha, founder of the NFT startup Few and Far, with securities fraud and wire fraud. The indictment centers on allegations that Tarsha systematically diverted capital intended for platform development toward illicit personal use.

The fundraising mechanism involved Simple Agreements for Future Tokens (SAFTs), through which at least 67 investors contributed more than $10 million beginning in February 2022. These backers were promised rights to 95 million FAR tokens upon the launch of a decentralized marketplace.

However, Woofun AI data shows that Tarsha allegedly began misappropriating these funds almost immediately, with the misconduct uncovered during a June 2023 audit. Instead of advancing the project, the capital was funneled into online gambling, cryptocurrency speculation, and personal luxuries including a loan for a Miami condominium, interior design services, and expenses related to his DJ hobby.

Operational deception accompanied the financial diversion; Tarsha dismissed most employees while retaining one contractor to create the illusion of a functional marketplace. Although the FAR token launched in May 2024, it quickly became effectively worthless and ceased trading. Tarsha was arrested on June 6, and the case has been assigned to U.S. District Judge Lewis A. Kaplan. Each charge carries a maximum sentence of 20 years in prison if convicted.

Attempts to contact Tarsha by email outside of U.S. working hours yielded no response by publication time. This silence underscores the severity of the legal proceedings and the complete breakdown of investor relations.