Federal prosecutors in the Southern District of New York have charged Few and Far founder Taj Tarsha with securities fraud and wire fraud, alleging that he raised more than $10 million for a Web3 platform and then spent a large share of that money 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 Tarsha, 34, was indicted for allegedly defrauding investors in Few and Far, a startup that aimed to build a decentralized marketplace for non-fungible tokens, or NFTs.
Prosecutors say the fundraising began in 2022
According to prosecutors, Tarsha started raising money in 2022 through Simple Agreements for Future Tokens, known as SAFTs. Those agreements allow investors to pay in advance for tokens that are delivered later. The Department of Justice alleges that he sold rights to 95 million FAR tokens to at least 67 investors and raised more than $10 million.
In a statement, FBI Assistant Director in Charge James C. Barnacle, Jr. said, “Taj Tarsha is alleged to have concealed fraudulent conduct behind his crypto startup, using investor funds for personal benefit. 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.”
Investor money was allegedly diverted soon after it came in
Rather than using the proceeds to build the marketplace, prosecutors said Tarsha diverted investor funds almost immediately. The indictment points to online gambling, speculative cryptocurrency purchases, nearly $1 million in bonuses, what prosecutors described as an inflated salary, a Miami condominium loan, interior design services, and “his DJ hobby.”
Prosecutors also accused Tarsha of concealing the company’s financial troubles after a 2023 audit uncovered what they described as misconduct. They said he kept up the appearance of continued development even after nearly all of the project’s employees had been laid off.
FAR launched in May 2024, then soon stopped trading
Prosecutors said, “When he finally launched the FAR token in May 2024, it was effectively worthless and soon ceased trading.”
Case joins other federal NFT fraud prosecutions
The charges come after several other federal cases tied to NFT-related fraud. In November 2023, Mutant Ape Planet creator Aurelien Michel pleaded guilty to wire fraud after prosecutors said he carried out an NFT rug pull that defrauded buyers of nearly $3 million.
Other cases cited by prosecutors included the creators of the Frosties NFT project and the founder of Baller Ape Club, where developers were accused of abandoning projects after raising millions from investors.
Deputy U.S. Attorney Sean S. Buckley said in a statement, “Investors are entitled to the truth when choosing to make an investment, and this Office and our law enforcement partners will hold business leaders responsible when they lie for their own gain.”
Decrypt reported that attorneys for Tarsha did not immediately respond to a request for comment.