Summary
- Taj Tarsha, founder of Few and Far, faces charges of securities fraud and wire fraud.
- Allegations state he misappropriated over $10 million raised from investors.
- If found guilty, he could serve up to 20 years in prison for each charge.
The founder of the NFT platform Few and Far, Taj Tarsha, has been charged with securities and wire fraud by federal prosecutors, who claim he raised over $10 million from investors intending to develop a Web3 platform, but then misused the funds for personal gambling, speculative trading, and even to support his DJing hobby.
On Wednesday, the U.S. Attorney's Office for the Southern District of New York announced the indictment of the 34-year-old Tarsha for allegedly deceiving investors in Few and Far, a startup focused on creating a decentralized marketplace for non-fungible tokens (NFTs).
“Taj Tarsha is accused of hiding fraudulent activities behind his crypto venture, misappropriating investor funds for personal gain,” stated James C. Barnacle Jr., Assistant Director in Charge of the FBI. “Ensuring the integrity of our financial markets is essential, and the FBI is committed to thorough investigations into potential financial crimes.”
Prosecutors assert that Tarsha began fundraising in 2022 via Simple Agreements for Future Tokens (SAFTs), enabling investors to pay upfront for tokens to be issued later. The Department of Justice (DOJ) claims he sold rights to 95 million FAR tokens to at least 67 investors, accumulating over $10 million.
Instead of utilizing the funds for the marketplace’s development, Tarsha allegedly redirected the money almost immediately for online gambling, risky cryptocurrency investments, nearly $1 million in bonuses, an inflated salary, a loan for a Miami condo, design services, and expenses related to his DJ hobby.
Moreover, prosecutors accused Tarsha of concealing the company’s financial difficulties after a 2023 audit revealed misconduct, while he attempted to project an image of ongoing development despite having laid off nearly all employees involved in the project.
“When he eventually launched the FAR token in May 2024, it was essentially worthless and quickly stopped trading,” prosecutors stated.
These charges come amid a rise in federal enforcement actions against NFT fraud. In November 2023, Aurelien Michel, creator of the Mutant Ape Planet, pleaded guilty to wire fraud for orchestrating an NFT "rug pull" that deceived investors out of nearly $3 million. Other cases include actions against the creators of the Frosties NFT project and the founder of Baller Ape Club, both accused of abandoning their projects after raising substantial funds from investors.
“Investors deserve transparency when making investment decisions, and this office, along with our law enforcement partners, will hold accountable those who deceive for personal gain,” remarked Deputy U.S. Attorney Sean S. Buckley.
Representatives for Tarsha did not provide an immediate comment to Decrypt.