In brief
- DOJ charged Few and Far founder Taj Tarsha with securities fraud and wire fraud.
- Prosecutors allege he raised more than $10 million through token sales before misusing investor funds.
- If convicted, he faces up to 20 years in prison on each count.
Federal prosecutors have charged the founder of NFT marketplace Few and Far with securities fraud and wire fraud, alleging he raised more than $10 million from investors to build a Web3 platform before spending much of the money on online gambling, speculative cryptocurrency trades, and personal expenses—like funding a DJ hobby.
On Wednesday, the U.S. Attorney's Office for the Southern District of New York said that Taj Tarsha, 34, was indicted for allegedly defrauding investors in Few and Far, a startup that sought to build a decentralized marketplace for non-fungible tokens better known as NFTs.
“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 projects employees.
“When he finally launched the FAR token in May 2024, it was effectively worthless and soon ceased trading,” prosecutors said.
The charges follow other federal cases targeting NFT fraud. In November 2023, Mutant Ape Planet creator Aurelien Michel pleaded guilty to wire fraud after prosecutors said he carried out an NFT “rug pull” that defrauded buyers of nearly $3 million. Other cases included the creators of the Frosties NFT project and the founder of Baller Ape Club, who accused developers of abandoning projects after raising millions from investors.
“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.