U.S. authorities have charged the founder of a crypto project with fraud over the misappropriation of millions of dollars raised from token investors.
The U.S. Attorney's Office for the Southern District of New York and the FBI said on August 5 that Taj Tarsha, founder of Few and Far Limited, has been indicted on securities fraud and wire fraud charges. Tarsha was arrested on June 6.
The indictment covers a fundraising campaign that began in February 2022. Through Simple Agreements for Future Tokens (SAFTs), Tarsha sold 95 million FAR tokens to at least 67 investors, pulling in more than $10 million. Investor money was supposed to fund development of a decentralized NFT marketplace and the FAR token itself.
Prosecutors say the diversion of funds started early. Tarsha used investor money for online casino gambling and speculative crypto purchases, and paid himself nearly $1 million in bonuses and salary. He has acknowledged that the compensation was unreasonable given that the company had no revenue and no product.
In June 2023, an audit surfaced the misuse of funds. Tarsha responded by telling investors the bonuses were tied to preset FAR token presale targets, that every transaction was carried out in the company's interest, and that all investor funds remained committed to the company's mission.
None of that was true, according to the indictment. He had dismissed nearly all staff and instructed the remaining contractors to create the illusion of active development.
For at least a year after the audit, Tarsha kept spending investor funds on personal expenses: cryptocurrency purchases, a Miami apartment loan, interior design and a DJ hobby.
When the FAR token finally launched in May 2024, it held no value and trading was quickly halted.