The event was scheduled to take place April 28–30 and May 5–7, 2017, but was aborted – after attendees had arrived – due to problems with security, food, logistics, understaffing, accommodation, and talent relations.

In May 2017, McFarland and Ja Rule were sued for $100 million in a class-action lawsuit on behalf of Fyre Festival attendees.

The following month, McFarland was arrested and charged with wire fraud in Manhattan federal court for his role in the organization of the festival.

[14] In August 2013, McFarland seeded payments company Magnises with $1.5 million of investor funding,[15] aiming to create an exclusive "black card" with social perks, such as club membership, targeted at status-oriented millennials in certain big cities.

However, the festival experienced a number of serious management, administration and misrepresentation issues, and was canceled after guests had begun to arrive at Great Exuma island.

[21] McFarland borrowed as much as $7 million in an effort to fund the festival, taking one loan with an effective annualized rate of 120 percent.

She added that McFarland's short but eventful career showed a "pattern of deception" and "overpromising luxury experiences that were not delivered".

[27] In March 2018, McFarland pleaded guilty to 2 counts of wire fraud in federal court in Manhattan and admitted to using fake documents to attract investors to put more than $26 million into his company.

[29] On June 12, 2018, McFarland was charged with selling fraudulent tickets to events such as the Met Gala, Burning Man, and Coachella while out on bail.

[36] In October 2022, McFarland teased in a video on TikTok and YouTube Shorts that he was planning a new business venture called "PYRT", with more details to be announced in November 2022.

[39][40] In August 2023, McFarland announced on TikTok that the "first 100" tickets for Fyre II were on sale for $499, despite still not having a venue, a date, or any musical acts.

[43] On September 9, 2024, McFarland stated Fyre Festival II will happen April 25, 2025 on a private island off the coast of Mexico in the Caribbean.