DOJ indicts NFT startup founder over alleged $10M investor fraud

The US Department of Justice has charged Taj Tarsha, founder of crypto startup Few and Far, with securities fraud and wire fraud for allegedly defrauding investors who financed the company’s NFT marketplace. In an Aug. 5 press release, prosecutors allege Tarsha raised more than $10 million by selling rights to future FAR tokens through SAFT agreements, promising the capital would be used to develop the platform, while instead diverting substantial amounts for personal use. According to the indictment, Tarsha spent investor money on online casino gambling, speculative cryptocurrency investments, nearly $1 million in concealed bonuses and salary payments, and other personal expenses including a Miami condominium loan, interior decorating, and DJ-related costs. Prosecutors allege he continued misleading investors even after an internal audit identified the misuse of funds, falsely claiming the transactions benefited the business and that investor capital remained dedicated to the project. Authorities also allege that Tarsha dramatically reduced the company’s workforce while instructing the remaining personnel to maintain the appearance of active product development. Although the FAR t...