Taj Tarsha, the 34-year-old founder of the NFT marketplace Few and Far, has been charged with securities fraud and wire fraud. Tarsha, who is from Miami, United States, was arrested on June 6.
Prosecutors allege Tarsha raised more than $10 million from at least 67 investors starting in February 2022 through Simple Agreements for Future Tokens (SAFTs). During this period, investors were sold rights to 95 million FAR tokens.
Amount allegedly raised from investors for the Few and Far marketplace.
An audit in June 2023 uncovered the alleged misconduct at Few and Far. Prosecutors allege Tarsha diverted investor funds for online gambling, speculative cryptocurrency trades, nearly $1 million in bonuses, an inflated salary, a Miami condominium loan, interior design services, and his DJ hobby.
Following the layoff of nearly all the project's employees, prosecutors allege Tarsha directed a contractor to make the marketplace appear functional to create the appearance of continued development. The FAR token, which launched in May 2024, was effectively worthless and soon ceased trading, according to prosecutors.
Concealed fraudulent conduct behind his crypto startup, using investor funds for personal benefit.
The case has been assigned to US District Judge Lewis A. Kaplan. Each charge against Tarsha carries a maximum sentence of 20 years in prison if convicted.
Investors are entitled to the truth when choosing to make an investment.
This case follows other legal actions in the sector, such as in November 2023, when Mutant Ape Planet creator Aurelien Michel pleaded guilty to wire fraud following an NFT 'rug pull' that defrauded buyers of nearly $3 million.
