The U.S. Department of Justice has charged Taj Tarsha, the 34-year-old founder of NFT marketplace Few and Far, with securities fraud and wire fraud. Prosecutors allege he raised more than $10 million from investors to build a Web3 platform before diverting substantial portions of the funds toward online gambling, speculative cryptocurrency trading, and personal expenses—including financing a DJ hobby.

On Wednesday, the U.S. Attorney's Office for the Southern District of New York announced that Tarsha had been indicted for allegedly defrauding investors in Few and Far, a startup that aimed to build a decentralized marketplace for non-fungible tokens on the NEAR Protocol blockchain. If convicted, he faces up to 20 years in prison on each count. The DOJ press release and related court documents provide further detail on the charges.

"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 funds in 2022 through Simple Agreements for Future Tokens (SAFTs), instruments that allow investors to pay upfront for tokens delivered at a later date. SAFTs became a popular fundraising vehicle during the 2021–2022 crypto and NFT boom, when venture capital and retail investment flooded Web3 startups amid surging digital asset prices. The DOJ alleges that he sold rights to 95 million FAR tokens to at least 67 investors, collecting more than $10 million.

Instead of deploying the capital to build the marketplace, prosecutors claim Tarsha diverted investor money almost immediately. The alleged misappropriations included online gambling, speculative cryptocurrency purchases, nearly $1 million in bonuses, an inflated salary, a Miami condominium loan, interior design services, and what prosecutors described as "his DJ hobby."

Prosecutors further accused Tarsha of concealing the company's financial difficulties after a 2023 audit revealed what they characterized as misconduct. By that point, the broader NFT market had undergone a sharp contraction, with trading volumes collapsing from their 2022 highs as investor enthusiasm cooled and many projects lost nearly all value. They allege he created the appearance of continued development even after laying off nearly all of the project's employees.

"When he finally launched the FAR token in May 2024, it was effectively worthless and soon ceased trading," prosecutors stated.

Tarsha denies the charges and, through his attorneys, indicated to Decrypt that he intends to fight them.

"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. The defense's framing echoes a broader debate within the cryptocurrency industry, where executives have repeatedly accused regulators—particularly the Securities and Exchange Commission under Chair Gary Gensler—of pursuing "regulation by enforcement" rather than providing clear rules for digital asset businesses.

"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.

"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.

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. Additional cases have included the creators of the Frosties NFT project and the founder of Baller Ape Club, both of whom were accused of abandoning their projects after raising millions from investors. The DOJ has also charged multiple individuals in separate cryptocurrency fraud enforcement actions.