UK SFO Makes Landmark Arrests in $28M Crypto Fraud Case Involving Basis Markets

In a significant enforcement action, the UK's Serious Fraud Office (SFO) has arrested two individuals in connection with a $28 million cryptocurrency fraud linked to the Basis Markets scheme. The arrests, made on November 20, 2025, in Herne Hill, London, and near Bradford, mark the SFO's first major foray into crypto crime investigations.

The case centers on Basis Markets, which raised $28 million through two NFT-based fundraising rounds in late 2021. The project promised high returns from a crypto hedge fund but abruptly collapsed in June 2022, citing proposed US regulations, leaving investors with substantial losses. The SFO, collaborating with Metropolitan and West Yorkshire Police, conducted raids targeting fraud and money laundering allegations.

Authorities highlighted red flags, including sudden communication cessations and suspicious fund movements. SFO Director Nick Ephgrave confirmed specialized resources are being deployed for digital asset crimes, while Solicitor General Ellie Reeves emphasized government support for combating crypto fraud. Victims and whistleblowers are urged to contact BasisMarkets@sfo.gov.uk.

This case aligns with the UK's intensified efforts under the Crown Prosecution Service's 2025 Economic Crime Strategy, focusing on crypto-related threats. The outcome could set legal precedents for NFT fundraising regulations and enhance investor protection measures globally.