Taj Tarsha founded Few and Far in 2022, raising funds by selling FAR token rights in the form of SAFT, promising to use the funds for building a decentralized NFT marketplace; the US Department of Justice has previously filed lawsuits against multiple cases of false statements and fund misappropriation in crypto projects, emphasizing that crypto financing is still subject to traditional securities and telecommunications fraud regulations.

In terms of capital pathways, investor funds were directly transferred to personal wallets for gambling, speculative trading, and living expenses, motivated by the desire to convert project financing into personal consumption; resources were diverted from promised market construction to private use, and after the audit exposed the issues, misleading explanations were still provided to maintain the illusion, ultimately leading to project stagnation and the token nearly reaching zero.

Similar cases have seen multiple NFT and token project founders prosecuted for fund misappropriation, and the regulatory logic that the SAFT structure is deemed a security in the absence of actual delivery; the current crypto startup environment is transitioning from loose financing to strict disclosure of fund usage.

This essentially reflects a regulatory change: crypto project financing is shifting from the illusion of "innovation exemptions" to fraud accountability equivalent to traditional finance, with the mechanism being that audits and investor complaints trigger federal investigations, making the disconnect between personal consumption and project commitments a prosecutable evidence chain.

ABAB News · Cognitive Laws

Financing commitments do not equal freedom of fund usage
Audits are the first line of defense against misappropriation
Using investor money for personal consumption will ultimately lead to court