“Taj Tarsha is alleged to have concealed fraudulent conduct behind his crypto startup, using investor funds for personal benefit,” FBI Assistant Director in Charge James C. Barnacle, Jr. said in a statement. “Protecting the integrity of our financial markets is a priority, and the FBI remains steadfast in its commitment to conducting thorough and fact-driven investigations into potential financial offenses.”
According to prosecutors, Tarsha allegedly began raising money in 2022 through Simple Agreements for Future Tokens, or SAFTs, which allow investors to pay upfront for tokens that are delivered at a later date. The DOJ alleges he sold rights to 95 million FAR tokens to at least 67 investors, raising more than $10 million.
Instead of using the money to build the marketplace, prosecutors allege Tarsha diverted investor funds almost immediately for online gambling, speculative cryptocurrency purchases, nearly $1 million in bonuses, an inflated salary, a Miami condominium loan, interior design services, and “his DJ hobby.”
Prosecutors also accused Tarsha of hiding the company's financial problems after a 2023 audit uncovered what they described as misconduct, while creating the appearance of continued development after laying off nearly all the project’s employees.
“When he finally launched the FAR token in May 2024, it was effectively worthless and soon ceased trading,” prosecutors said.
“Investors are entitled to the truth when choosing to make an investment, and this Office and our law enforcement partners will hold business leaders responsible when they lie for their own gain,” Deputy U.S. Attorney Sean S. Buckley said in a statement.
Attorneys for Tarsha did not immediately respond to a request for comment by Decrypt.
