UK SFO Launches First Crypto Fraud Probe, Arrests Two in $28M Basis Markets Scheme

The UK Serious Fraud Office (SFO) has initiated its first major cryptocurrency fraud investigation, targeting Basis Markets for an alleged $28 million scheme. On November 20, 2025, the SFO arrested two men—aged in their thirties and forties—on suspicion of fraud and money laundering, with coordinated raids conducted in residential areas of London and Yorkshire, supported by the Metropolitan Police and West Yorkshire Police.

The scheme involved two public fundraisers: one in November 2021 and another in December 2021, where investors purchased non-fungible tokens (NFTs) for access to profit-sharing groups. Basis Markets promoted itself as a crypto hedge fund using algorithmic trading for low-risk operations, but in June 2022, investors were abruptly informed the project would not proceed as planned, citing new US regulations without providing refunds or detailed explanations.

SFO Director Nick Ephgrave QPM emphasized the agency's growing cryptocurrency capability and commitment to pursuing fraudsters, while Solicitor General Ellie Reeves MP described fraud as devastating to community and business confidence. The case marks a strategic shift, as the SFO—traditionally handling large financial crimes—now directly addresses crypto fraud, signaling heightened regulatory scrutiny. Investigators are examining blockchain transactions and urging the public to submit information via BasisMarkets@sfo.gov.uk.