The funds were raised through the sale of Simple Agreements for Future Tokens (SAFTs), with more than 95 million FAR tokens sold to at least 67 investors, supposedly for technology development and token preparation.

Taj Tarsha, founder of NFT startup Few and Far, has been indicted on securities fraud and wire fraud charges for allegedly defrauding investors of more than $10 million intended to fund an NFT marketplace.

Prosecutors say investors’ funds were diverted to personal use, including online casino gambling, cryptocurrency investments, nearly $1 million in concealed bonuses and salary payments, a Miami condo loan, interior decorating, and DJ-related costs.

An internal audit in mid-2023 uncovered misconduct, and prosecutors contend Tarsha misrepresented bonus ties to presale milestones and progress of the company.

Prosecutors allege Tarsha fired nearly all staff and directed remaining contractors to create the appearance of ongoing development rather than real progress.

Each count in the indictment carries up to 20 years in prison, and the case is before U.S. District Judge Lewis A. Kaplan, who recently denied a retrial bid in a related case.

The FAR token launched in May 2024 but allegedly became worthless and ceased trading, with prosecutors arguing the project lacked a finished product and revenue.

Authorities emphasize enforcement against crypto investment fraud, theft, and cybercrime, as shown by concurrent federal prosecutions and investigations.

If convicted, Tarsha faces up to 20 years in prison on each count and potential disgorgement of assets bought with investor funds.

Tarsha owned all shares of Few and Far, which advertised FAR on its mainnet, while the FBI investigated the case.

Audits in 2023 revealed missing funds and about $1 million in hidden bonuses paid to Tarsha, which he concealed from investors and a co-founder, alongside a claimed zero revenue.

Audits showed most employees were let go and a contractor remained to simulate ongoing development, while Tarsha drew a $360,000 annual salary after fundraising.