Investigation into Basis Markets Collapse
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. This probe is investigating suspected fraud and money laundering tied to public fundraising campaigns that utilized 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
Investigators, working in collaboration with the Metropolitan Police and West Yorkshire Police, conducted raids in Herne Hill and near Bradford. During these operations, two men, aged in their thirties and forties, were arrested on suspicion of multiple fraud and money laundering offences. Basis Markets had raised capital through two public fundraisers in late 2021. Investors were subsequently informed in June 2022 that the project could not proceed due to potential new US regulations.
Call for Investor Information
Nick Ephgrave QPM, Director of the SFO, underscored the agency's dedication to combating crypto-related fraud. He stated:
“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 emphasized that fraud harms both communities and investor confidence. She commented:
“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 serves as a significant indicator of the UK's increasing regulatory scrutiny on digital assets, even as crypto adoption continues to grow. Regulators are placing a heightened emphasis on ensuring that fundraising and investment activities within the sector maintain transparency and adhere to existing financial laws.
The SFO’s announcement represents a crucial development in the UK’s efforts to address fraud within the rapidly expanding crypto sector. The SFO encourages anyone with information about Basis Markets, including investors and witnesses, to come forward to assist with the ongoing investigation.
Broader Regulatory Landscape
In parallel developments, the Bank of England has outlined plans for the regulation of stablecoins that are widely used for payments. This signals a significant step toward the integration of digital currencies into the UK’s financial system.