Few and Far Founder Charged Over Alleged Misuse of $10 Million Raise

Federal prosecutors in Manhattan charged Taj Tarsha, founder of NFT startup Few and Far, with securities fraud and wire fraud over allegations that he misused more than $10 million raised from investors. The U.S. Attorney's Office for the Southern District of New York said the money was meant to support development of a decentralized NFT marketplace.

The case matters because it adds another enforcement action to the record of crypto fundraising disputes, particularly around token-related investments. Prosecutors said the fundraising began in February 2022 and involved at least 67 investors through Simple Agreements for Future Tokens, or SAFTs, a structure commonly used to give backers rights to future tokens.

According to authorities, Few and Far investors were entitled to receive 95 million FAR tokens while their capital funded the planned marketplace. Prosecutors alleged that Tarsha began diverting investor funds almost immediately after the fundraising closed.

The alleged misconduct was uncovered in a June 2023 internal audit, prosecutors said. Authorities claimed Tarsha misled investors about bonuses and company spending, while most employees had been dismissed and a contractor was directed to make the marketplace appear functional.

Prosecutors also alleged investor funds were used for online gambling, cryptocurrency speculation, a loan tied to a Miami condominium, interior design services and expenses connected to Tarsha's DJ hobby. Few and Far launched the FAR token in May 2024, but prosecutors said it soon became effectively worthless and stopped trading.

Tarsha, 34, of Miami, was arrested on June 6, and the case was assigned to U.S. District Judge Lewis A. Kaplan. Each charge carries a maximum sentence of 20 years in prison if he is convicted.