Quick Breakdown
- UK’s SFO launches its first major cryptocurrency investigation into Basis Markets after a $28M collapse.
- Two arrests were made in West Yorkshire and London for suspected fraud and money laundering.
- Investors urged to provide information as authorities probe fundraisers for NFT and crypto hedge funds.
The UK’s Serious Fraud Office (SFO) has launched its first major cryptocurrency investigation following the collapse of a $28 million scheme known as Basis Markets. The probe comes after reports of suspected fraud and money laundering tied to public fundraising campaigns using non-fungible tokens (NFTs) and a purported crypto hedge fund.
#Breaking: Two men have been arrested on suspicion of fraud and money laundering as part of a new SFO crypto investigation into Basis Markets.
SFO searches of residential properties in London and Yorkshire are ongoing.
Read more online: https://t.co/JoxTbzEsah pic.twitter.com/fbno5V2Xe2
— Serious Fraud Office (SFO) (@UKSFO) November 20, 2025
SFO launches investigation into $28 million crypto scheme
Investigators, working alongside the Metropolitan Police and West Yorkshire Police, conducted raids in Herne Hill and near Bradford, arresting two men in their thirties and forties on suspicion of multiple fraud and money laundering offences. Basis Markets raised capital through two public fundraisers in late 2021, with investors informed in June 2022 that the project could no longer proceed due to potential new US regulations.
Investors urged to come forward
Nick Ephgrave QPM, Director of the SFO, emphasized the agency’s commitment to tackling crypto-related fraud:
“With our expanding cryptocurrency capability, we are determined to pursue anyone seeking to use crypto to defraud investors. Today’s action is an important step in our investigation, and we’re urging anyone with information to come forward.”
Solicitor General Ellie Reeves MP added that fraud undermines both communities and investor confidence:
“Those committing fraud aren’t just taking from hard-working members of the public but also eroding British values of fairness. We resolutely support the SFO in tackling cryptocurrency fraud and protecting consumers.”
The Basis Markets case highlights the UK’s growing regulatory focus on digital assets, even as crypto adoption continues to gain momentum. Regulators are placing greater emphasis on ensuring that fundraising and investment activities in the sector remain transparent and in line with existing financial laws.
The SFO’s announcement marks an essential step in the UK’s efforts to tackle fraud in the fast-growing crypto sector. Anyone with information about Basis Markets, whether investors or witnesses, is encouraged to contact the SFO to support the investigation.
Meanwhile, the Bank of England has outlined plans to regulate stablecoins widely used for payments, signalling a major step toward integrating digital currencies into the UK’s financial system.
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