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DOJ charges Few and Far founder over alleged NFT token sale fraud
Prosecutors allege he raised more than $10 million via SAFTs, sold rights to 95 million FAR tokens to at least 67 investors, then diverted funds to gambling, crypto trades, and personal expenses.
The U.S. Department of Justice has charged the founder of NFT marketplace Few and Far, Taj Tarsha, with securities fraud and wire fraud, alleging he raised more than $10 million from investors with promises to build a Web3 platform but instead used investor funds for personal benefit.
According to prosecutors, Tarsha began raising money in 2022 through Simple Agreements for Future Tokens, or SAFTs, which involve investors paying upfront for tokens to be delivered later. The DOJ alleges he sold rights to 95 million FAR tokens to at least 67 investors.
Prosecutors say the money was diverted to online gambling, speculative cryptocurrency trades, and personal expenses, including funding a DJ hobby. They also allege Tarsha concealed problems after a 2023 audit found what prosecutors described as misconduct and created the appearance of continued development after laying off nearly all project employees.
The DOJ further alleges that when the FAR token finally launched in May 2024, it was effectively worthless and soon ceased trading. If convicted, Tarsha faces up to 20 years in prison on each count, the case follows other federal actions targeting NFT fraud, including a guilty plea by Mutant Ape Planet creator Aurelien Michel over a reported rug pull involving nearly $3 million.