67 investors lost $10M on FAR token the founder launched worthless

An internal audit in June 2023 flagged the activity, the indictment says, setting off disputes over the company's finances. Tarsha later regained control of the treasury, fired nearly all remaining staff, and kept one contractor working on efforts designed to create the appearance of continued development, prosecutors allege.

Personal spending continued for at least another year, extending to a Miami condominium loan, interior design services, an unrelated business, and Tarsha's DJ hobby, according to court documents.

Tarsha siphoned nearly $1 million more under the pretext of legitimate compensation, prosecutors say – two bonuses he hid from investors and a co-founder, plus a salary he acknowledged was unreasonable at a company with no product and "zero revenue."

He launched FAR in May 2024, more than two years after the earliest investors paid for rights to the token. "When he finally launched the FAR token in May 2024, it was effectively worthless and soon ceased trading," prosecutors said. The token has fallen more than 99% from any initial price.

Other federal NFT cases have followed similar patterns. Prosecutors charged two men in a separate $22 million NFT rug-pull case tied to digital-asset projects marketed to investors. A separate Evolved Apes case centered on accusations that NFT buyers were promised development of a related video game before project proceeds were transferred away; three U.K. nationals faced charges in that matter.

The spending pattern mirrors a Clucoin fraud case where founder Austin Michael Taylor admitted diverting $1.14 million in investor funds to online casinos. Federal prosecutors also secured a nine-year sentence in a separate case where a defendant raised more than $10 million through representations about trading expertise and principal protection.