Taj Tarsha, founder of the Few and Far NFT marketplace, faces federal fraud charges for allegedly raising $10 million from investors and spending it on gambling, crypto trades, and a DJ hobby.
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Federal prosecutors have charged the founder of the NFT marketplace Few and Far with securities fraud and wire fraud, alleging he raised more than $10 million from investors and spent much of it on online gambling, speculative crypto trades, and personal expenses including a DJ hobby.
The U.S. Attorney's Office for the Southern District of New York said Wednesday that Taj Tarsha, 34, was indicted for allegedly defrauding investors in Few and Far, a startup meant to build a decentralized marketplace for non-fungible tokens, or 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."
Prosecutors allege Tarsha began raising money in 2022 through Simple Agreements for Future Tokens, or SAFTs, which let investors pay upfront for tokens delivered later. The DOJ says he sold rights to 95 million FAR tokens to at least 67 investors, raising more than $10 million.
Instead of spending on the marketplace, prosecutors said Tarsha diverted investor funds almost immediately. The money went to online gambling, speculative cryptocurrency purchases, nearly $1 million in bonuses, an inflated salary, a Miami condominium loan, interior design services, and his DJ hobby.
A 2023 audit uncovered what prosecutors described as misconduct. Tarsha then hid the company's financial problems and created the appearance of continued development after laying off nearly all the project's employees, they said.
"When he finally launched the FAR token in May 2024, it was effectively worthless and soon ceased trading," prosecutors said.
The case follows other federal NFT fraud actions. In November 2023, Mutant Ape Planet creator Aurelien Michel pleaded guilty to wire fraud after prosecutors said he carried out an NFT rug pull defrauding buyers of nearly $3 million. Similar cases hit the creators of the Frosties NFT project and the founder of Baller Ape Club, who developers accused of abandoning projects after raising millions from investors.
"Investors are entitled to the truth when choosing to make an investment," Deputy U.S. Attorney Sean S. Buckley said in a statement. "This Office and our law enforcement partners will hold business leaders responsible when they lie for their own gain."
Attorneys for Tarsha did not respond to requests for comment.
For broader context on how crypto fraud cases have reshaped regulatory scrutiny, see our crypto market analysis.
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