Federal prosecutors have charged Taj Tarsha, the founder of NFT platform Few and Far, accusing him of misleading investors and allegedly misappropriating millions of dollars raised to build the project.

The U.S. Attorney’s Office for the Southern District of New York charged Tarsha with securities fraud and wire fraud, alleging that he diverted more than $10 million in investor funds toward gambling, cryptocurrency trading, and personal expenses instead of developing the company’s planned NFT marketplace.

Prosecutors said Tarsha raised the money from at least 67 investors beginning in February 2022 through Simple Agreements for Future Tokens (SAFTs). The agreements gave investors the right to receive 95 million FAR tokens once the project launched.

The funds were intended to support the creation of Few and Far’s decentralized NFT marketplace, but prosecutors allege that Tarsha began using the money improperly soon after the fundraising concluded.

According to authorities, an internal audit in June 2023 uncovered the alleged misuse of funds. Prosecutors claim Tarsha misled investors by saying bonuses paid to him were connected to token presale milestones and that company funds were being used to advance development.

The indictment alleges that, behind the scenes, Tarsha had reduced the company’s workforce and instructed a contractor to create the appearance that the marketplace was functioning and progressing.

Prosecutors further allege that investor money was spent on personal costs, including payments related to a Miami condominium loan, interior design services, and expenses connected to Tarsha’s DJ activities.

Few and Far launched the FAR token in May 2024, but prosecutors said the token quickly lost value and eventually became effectively worthless with little to no trading activity.

Tarsha, a Miami resident, was arrested on June 6, and the case has been assigned to U.S. District Judge Lewis A. Kaplan. If convicted, each charge could result in a maximum sentence of up to 20 years in prison.

CoinDesk attempted to contact Tarsha for comment by email outside standard U.S. business hours but had not received a response at the time of publication.