Taj Tarsha Securities Fraud Case

Under Texas law, selling a crypto token or NFT investment can be treated as selling a security — and lying to investors about how their money will be used is securities fraud, a felony that reaches all the way to a first-degree felony when the amount tops $100,000. That is the Texas lens on the federal case against Miami NFT founder Taj Tarsha, who is accused of raising more than $10 million from investors and spending it on gambling, a condo loan, and a DJ hobby.

What Is Taj Tarsha Accused Of?

According to reporting by The Block, Taj Tarsha, 34, of Miami was charged with securities fraud and wire fraud in a federal case assigned to U.S. District Judge Lewis Kaplan in New York. Prosecutors allege that through his company Few and Far Limited — pitched as a decentralized NFT marketplace — Tarsha sold roughly 95 million FAR tokens to nearly 70 investors using Simple Agreements for Future Tokens, raising over $10 million. Prosecutors say that soon after receiving investor money he used it for gambling, speculative digital assets, a loan for a Miami condominium, interior design, and his DJ hobby, and that he made deceptive claims about how the funds would be used. Each count carries a maximum of 20 years in prison.

Is Selling a Crypto Token or NFT a Security in Texas?

It often is. Under the Texas Securities Act, the definition of a "security" is broad and functional, and Texas regulators and courts apply an investment-contract analysis much like the federal Howey test: when people invest money in a common enterprise expecting profits from the efforts of others, the instrument is a security regardless of whether it is called a token, a coin, an NFT, or a "SAFT." The Texas State Securities Board has repeatedly treated crypto-asset offerings as securities subject to registration and anti-fraud rules. So in Frisco or Dallas-Fort Worth, an offering marketed as a token presale could be regulated exactly as if it were stock.

What Is Securities Fraud Under Texas Law?

Under Texas Government Code Section 4007.203, it is a felony to engage in fraud or a fraudulent practice, or to make an untrue statement or a material omission, in connection with the sale of any security. The offense is graded by the dollar amount involved: a third-degree felony when the amount is less than $10,000, a second-degree felony from $10,000 to under $100,000, and a first-degree felony — punishable by five to 99 years or life — when the amount is $100,000 or more. Amounts from a single scheme or continuing course of conduct can be aggregated to set the felony level, so an alleged multimillion-dollar token raise would sit at the very top of that ladder.

What About Selling Unregistered Securities in Texas?

That is a separate crime. Under Texas Government Code Section 4007.201, selling or offering a security that has not been registered, or acting as an unregistered dealer, is a third-degree felony — and Texas courts have held that this is a nature-of-conduct offense, meaning the state does not have to prove the seller knew registration was required. A token presale conducted without registering the securities or qualifying for an exemption could therefore support charges independent of any fraud allegation, which is why crypto and NFT offerings so often draw both an unregistered-securities count and a securities-fraud count.

How Would a Texas Court Handle a Case Like This?

A case like this would likely be built around the money trail and the promises made to investors. Prosecutors would compare what investors were told about the use of funds with where the money actually went, while the defense would focus on intent, materiality, and whether the instrument really qualifies as a security. Because the Texas Securities Act carries a five-year criminal statute of limitations and allows aggregation across a scheme, timing and how the amounts are grouped can be decisive. State securities charges can also run alongside federal securities and wire-fraud charges for the same conduct, and a defendant may face parallel civil enforcement from the Texas State Securities Board.

How L&L Law Group Can Help

Securities fraud is one of the most document-intensive charges in Texas criminal law, and the line between an dedicated-but-legal startup and a felony often comes down to intent, disclosures, and whether an instrument is even a security. At L & L Law Group, PLLC, we defend Frisco and Dallas-Fort Worth clients against securities-fraud, unregistered-securities, and investment-fraud allegations, digging into the offering documents, the flow of funds, and the state's theory of what investors were actually promised. If you or your business is facing a securities or investment-fraud investigation in Collin County or anywhere in DFW, contact us for a confidential consultation.

Source: Reporting via The Block and the Texas State Securities Board (2026). This article is legal commentary by L & L Law Group, PLLC on a news story and is not a republication of the original reporting.

By Reggie London and Njeri London. This article is attorney advertising and general information, not legal advice, and does not create an attorney-client relationship. Every case is different; outcomes depend on specific facts. If you face criminal charges in Texas, consult a licensed Texas criminal-defense attorney.