NFT Founder Taj Tarsha Indicted for Alleged Misuse of $10M Investor Funds

Taj Tarsha, founder of NFT startup Few and Far, has been indicted by federal prosecutors for allegedly misusing $10 million in investor funds. The indictment alleges that Tarsha used the money to fund his own personal expenses, including online casino gambling and a side career as a DJ.

The allegations state that Tarsha raised more than $10 million through Simple Agreements for Future Tokens (SAFTs) from at least 67 investors starting in February 2022. However, instead of using the funds to build an NFT marketplace on NEAR Protocol as promised, prosecutors claim Tarsha used it for personal gain.

The indictment lists a range of expenses that Tarsha allegedly incurred with investor money, including nearly $1 million in bonuses and salary that he concealed from the company and its backers. Pantera Capital led the $10.5 million seed round in March 2023, but prosecutors say that even this respected venture capital firm did not detect the misuse.

The case is a warning to investors and founders alike: due diligence may not be enough to prevent such incidents. The Southern District of New York has been building a track record of prosecuting token issuers who raise funds through SAFTs only to treat them as personal accounts.