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Remember when people were dropping six figures on cartoon monkey JPEGs? Federal prosecutors say one Miami entrepreneur saw that frenzy as an opportunity to make millions, allegedly by ripping off his own investors.
Many of us remember calling out the lunacy of investing in NFTs, which are essentially one-of-a-kind digital items like art, music, or even land. While they rose in popularity at about the same time as cryptocurrency, NFTs have since taken a nosedive (in popularity and value).
According to newly unsealed charges in New York, Few and Far founder Taj Tarsha, 34, is accused of defrauding investors out of roughly $10 million by promising to build a non-fungible token (NFT) marketplace while secretly diverting money for personal use.
“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’s project began at the peak of NFT popularity in February 2022. From the Few and Far (FAR) name, Tarsha raised about $10 million from the sale of 95 million FAR tokens to at least 67 investors, according to the Department of Justice (DOJ).
“Almost immediately, however, TARSHA began misappropriating investor funds for his personal use, including gambling at an online casino and purchasing speculative cryptocurrencies,” according to the DOJ.
Tarsha also used about $1 million of investors’ money to give himself a pair of bonuses, “which he deliberately hid from investors and a co-founder — and a high salary that he acknowledged was unreasonable in light of Few and Far’s lack of product and ‘zero revenue,'” according to the DOJ.
Prosecutors say the con unraveled in June 2023 during an audit that revealed Tarsha had fired nearly all his staff and ordered the sole remaining contractor to create the appearance of continued development to fool investors.
Tarsha is charged with securities fraud and wire fraud and faces up to 20 years in prison on each count.
