NFT Founder Indicted for Allegedly Trading Investor Millions for Slots, Swaps, and Spinning Tunes 🎧

The founder of NFT marketplace Few and Far has been indicted on securities fraud and wire fraud charges alleging he raised more than $10 million from investors and diverted the funds to online gambling, speculative cryptocurrency trades, and personal expenses including a DJ hobby. The U.S. Attorney's Office for the Southern District of New York announced Wednesday that Taj Tarsha, 34, is charged with defrauding investors in Few and Far, a startup that prosecutors said sought to build a decentralized marketplace for non-fungible tokens.

"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."

According to prosecutors, Tarsha began raising money in 2022 through Simple Agreements for Future Tokens, or SAFTs, which allow investors to pay upfront for tokens delivered at a later date. The DOJ alleges he sold rights to 95 million FAR tokens to at least 67 investors, generating more than $10 million. Instead of building the marketplace, prosecutors said Tarsha diverted the funds almost immediately for online gambling, speculative cryptocurrency purchases, nearly $1 million in bonuses, an inflated salary, a Miami condominium loan, interior design services, and "his DJ hobby."

Prosecutors also accused Tarsha of concealing the company's financial problems after a 2023 audit uncovered what they described as misconduct, while maintaining the appearance of ongoing development after laying off nearly all the project's employees. "When he finally launched the FAR token in May 2024, it was effectively worthless and soon ceased trading," prosecutors said.

The charges follow other federal cases targeting NFT 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 have involved the creators of the Frosties NFT project and the founder of Baller Ape Club, with developers accused of abandoning projects after raising millions from investors. "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," Deputy U.S. Attorney Sean S. Buckley said in a statement. Attorneys for Tarsha did not immediately respond to a request for comment.