The U.S. Department of Justice has formally charged Taj Tarsha, the 34-year-old founder of the NFT marketplace Few and Far, with securities fraud and wire fraud. The indictment, unsealed on Wednesday, alleges that Tarsha raised over $10 million from nearly 70 investors through a Simple Agreement for Future Tokens (SAFT) sale of 95 million FAR tokens, then misappropriated the funds for personal use.
According to prosecutors, instead of developing the decentralized NFT marketplace as promised, Tarsha used investor money for gambling, speculative digital asset purchases, a loan for a Miami condominium, interior design, and his DJ hobby. The fraud came to light in 2023 when an internal audit flagged irregularities. Tarsha allegedly lied to investors, claiming the funds were essential for project development and that bonuses were tied to presale targets. In reality, nearly all staff had been fired, and the remaining contractor was instructed to “create the appearance of continued development”.
Tarsha was arrested on June 6. He faces up to 20 years in prison for each wire fraud and securities fraud count. The case has been assigned to U.S. District Judge Lewis Kaplan in the Southern District of New York, the same judge who presided over the sentencing of former FTX CEO Sam Bankman-Fried. The charges underscore heightened regulatory scrutiny on NFT projects and serve as a warning to founders about the legal consequences of misrepresenting the use of investor funds.
