Crypto
Home›Crypto›Regulation›NFT startup founder charged with allegedly diverting $…
NFT startup founder charged with allegedly diverting $10M from fundraising
Prosecutors said investor money intended for an NFT marketplace was redirected to gambling, crypto speculation, and personal expenses, after a June 2023 internal audit uncovered the alleged conduct.
CoinDesk reports that U.S. federal prosecutors have charged Taj Tarsha, the founder of NFT startup Few and Far, with securities fraud and wire fraud tied to a $10 million fundraising round.
According to the U.S. Attorney's Office for the Southern District of New York, Tarsha raised the funds from at least 67 investors starting in February 2022 using Simple Agreements for Future Tokens, with investors expecting the right to receive 95 million FAR tokens to support development of a decentralized NFT marketplace.
Prosecutors allege that soon after the fundraising closed, Tarsha diverted investor funds into online gambling, cryptocurrency speculation, and personal spending, including a loan for a Miami condominium, interior design services, and DJ hobby-related expenses.
The case also alleges that after a June 2023 internal audit uncovered the alleged misconduct, Tarsha had told investors that certain bonuses were linked to token presale milestones while company funds were advancing the project, and prosecutors said the FAR token launched in May 2024 before becoming effectively worthless and stopping trading.