Assistant US Attorney Kristy Greenberg filed a motion on Monday seeking more time to continue discussions with McFarland's attorney.

McFarland, age 25, was first arrested on June 30 at later released on bail. He is accused of duping investors who bought stakes worth $1.2 million in the failed festival. According to authorities the entrepreneur inflated revenue projections in documents he provided to the investors.

The luxurious Fyre Festival was meant to take place over two weekends in April and May in the Bahamas. Attendees spent thousands on tickets, and arrived to find no working bathrooms, a lack of food, shelter and musical acts.

The event was put on to promote McFarland's talent booking service, which was co-founded by rapper Ja Rule.

If charged, McFarland could face up to 20 years in prison.