NFT startup founder accused of diverting millions into gambling and luxury spending
Federal prosecutors say the founder of an NFT startup collected more than $10 million from investors by promising to build… Continue reading NFT startup founder accused of diverting millions into gambling and luxury spending The post NFT startup founder accused of diverting millions into gambling and luxury spending appeared first on ReadWrite .
An NFT startup founder, Taj Tarsha, has been indicted by a federal grand jury in Manhattan on charges of securities fraud and wire fraud. According to prosecutors, Tarsha, 34, collected over $10 million from investors under the guise of building a digital collectibles marketplace, but instead misappropriated the funds for personal gain such as gambling, cryptocurrency trading, and luxury purchases.
The indictment alleges Tarsha used investor money to fund his personal expenses shortly after promising investors the funds would be used for the development of the NFT marketplace and its cryptocurrency token. Tarsha, who was arrested on June 6, 2026, was allegedly making a "magic ticket to a 10-30M exit" within 18 months and paid himself a salary of $360,000 while secretly approving $1.2 million in bonuses.
Despite admitting he was making too much money given the company was over six months delayed on product and making virtually zero revenue, Tarsha allegedly told a co-founder that bonuses were being 'squeezed out'. He also reportedly contemplated a $200k personal take from the company and later sent his fiancée a link to a $350,000 luxury yacht.
The FAR token launched in May 2024 before losing nearly all its value and ceasing to trade. If convicted, Tarsha faces a maximum sentence of 20 years in prison.
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