Key facts
- Taj Tarsha, founder of NFT marketplace Few and Far, faces charges of securities fraud and wire fraud.
- Prosecutors allege he raised more than $10 million from investors.
- The funds were allegedly misused for gambling, cryptocurrency trading, bonuses, and personal expenses.
- Tarsha is accused of concealing the company's financial issues and misleading investors.
- The FAR token, launched by the company, became worthless and ceased trading shortly after its release.
Federal prosecutors have charged Taj Tarsha, the 34-year-old founder of NFT marketplace Few and Far, with securities fraud and wire fraud. The U.S. Attorney's Office for the Southern District of New York alleges that Tarsha raised over $10 million from at least 67 investors starting in 2022 through the sale of Simple Agreements for Future Tokens (SAFTs) for 95 million FAR tokens. Instead of using these funds to develop the promised decentralized marketplace for non-fungible tokens (NFTs), prosecutors claim Tarsha diverted the money for personal use, including online gambling, speculative cryptocurrency purchases, nearly $1 million in bonuses, an inflated salary, a Miami condominium loan, interior design services, and his DJ hobby.
According to the indictment, Tarsha allegedly concealed the company's financial difficulties after a 2023 audit revealed misconduct. He is also accused of creating the appearance of ongoing development after laying off most of the project's employees. When the FAR token was eventually launched in May 2024, it was reportedly worthless and soon ceased trading.
FBI Assistant Director in Charge James C. Barnacle, Jr. stated that Tarsha is alleged to have concealed fraudulent conduct behind his crypto startup and used investor funds for personal benefit, emphasizing the FBI's commitment to investigating financial offenses. Deputy U.S. Attorney Sean S. Buckley added that investors are entitled to the truth and that business leaders will be held responsible for lying for personal gain.
This case follows similar federal actions against NFT fraud, including the guilty plea of Aurelien Michel, creator of Mutant Ape Planet, for a $3 million NFT rug pull, and accusations against creators of the Frosties NFT project and the founder of Baller Ape Club for abandoning projects after raising millions.