Key facts
- Taj Tarsha, founder of NFT marketplace Few and Far, faces charges of securities fraud and wire fraud.
- Prosecutors allege he raised over $10 million from at least 67 investors starting in February 2022.
- Funds were allegedly diverted to online gambling, cryptocurrency speculation, bonuses, and personal expenses, including a Miami condominium loan and DJ hobby.
- An internal audit in June 2023 uncovered the alleged misconduct.
- The company's FAR token, launched in May 2024, became worthless and stopped trading shortly after release.
- Tarsha faces a maximum sentence of 20 years in prison per charge if convicted.
Federal prosecutors have charged Taj Tarsha, the 34-year-old founder of NFT startup 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 beginning in February 2022 through Simple Agreements for Future Tokens (SAFTs). Investors were promised 95 million FAR tokens in exchange for funding the development of the company's planned decentralized NFT marketplace.
Prosecutors claim Tarsha began misappropriating investor funds almost immediately after the fundraising closed, diverting them to online gambling, cryptocurrency speculation, and personal expenses, including a loan for a Miami condominium, interior design services, and his DJ hobby. An internal audit in June 2023 allegedly uncovered the misconduct. The indictment further alleges that Tarsha falsely told investors that bonuses were tied to presale milestones and that company funds were used for project advancement, while in reality, he had dismissed most employees and directed a contractor to create a false appearance of a functional marketplace.
The FAR token, launched by Few and Far in May 2024, quickly became effectively worthless and ceased trading, according to prosecutors. Tarsha was arrested on June 6 and faces a maximum of 20 years in prison per charge if convicted. This case follows similar federal actions against NFT fraud, including the guilty plea of Aurelien Michel 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.