Federal prosecutors have charged the founder of NFT marketplace Few and Far with securities fraud and wire fraud, alleging he raised more than $10 million from investors to build a Web3 platform before spending much of the money on online gambling, speculative cryptocurrency trades, and personal expenses—like funding a DJ hobby.
On Wednesday, the U.S. Attorney’s Office for the Southern District of New York said that Taj Tarsha, 34, was indicted for allegedly defrauding investors in Few and Far, a startup that sought to build a decentralized marketplace for non-fungible tokens better known as NFTs.
“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.”
Tarsha, meanwhile, denies the charges and in a statement via his attorneys indicated to Decrypt that he plans to fight the charges. “We are disappointed that the government has chosen to pursue criminal charges against the founder of a legitimate Web3 startup that built a real NFT marketplace, launched its token, and then confronted the same market collapse that devastated countless other NFT projects,” Even T. Barr and Kaela Dahan, attorneys for Tarsha, said in a joint statement provided to Decrypt.
“Mr. Tarsha never intended to defraud anyone. Sophisticated investors knowingly invested in digital assets back in 2022 at a time of extraordinary optimism, understanding both the risks and the potential rewards. After years of regulation by enforcement rather than clear rules, prosecutors are now attempting to rewrite a failed business venture as a criminal fraud case through hindsight and selective storytelling. But business failure is not a crime. Mr. Tarsha is innocent and looks forward to being fully exonerated,” the attorneys said.
According to prosecutors, Tarsha allegedly began raising money in 2022 through Simple Agreements for Future Tokens, or SAFTs, which allow investors to pay upfront for tokens that are delivered at a later date. The DOJ alleges he sold rights to 95 million FAR tokens to at least 67 investors, raising more than $10 million.
Instead of using the money to build the marketplace, prosecutors allege Tarsha diverted investor 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.”
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