The United Kingdom”s Serious Fraud Office (SFO) has initiated a significant crackdown on cryptocurrency fraud, making its first major arrests in a case associated with the Basis Markets scheme. On November 20, 2025, two individuals were detained in London and Bradford, accused of involvement in a scheme that allegedly defrauded investors of $28 million.
This operation signifies a notable evolution in the UK”s approach to cryptocurrency-related crime, with authorities intensifying their efforts to combat sophisticated digital asset fraud. The arrests were made following coordinated raids by the SFO, Metropolitan Police, and West Yorkshire Police, targeting fraud and money laundering linked to Basis Markets.
SFO Director Nick Ephgrave emphasized that the agency has developed specialized resources aimed at tackling fraud in the cryptocurrency sector. With the rise of digital asset schemes, these resources are deemed essential for protecting investors. Solicitor General Ellie Reeves expressed that fraudulent activities of this nature pose a serious threat to the UK”s economic stability, reinforcing the government”s commitment to supporting enforcement actions against such crimes.
The SFO has reached out to victims and whistleblowers, urging them to come forward. This public appeal indicates that authorities are anticipating more individuals affected by the scam, suggesting that the ongoing investigation could establish crucial legal precedents in the realm of cryptocurrency fraud enforcement.
Basis Markets was able to raise $28 million through two public NFT-based fundraising initiatives in late 2021, leveraging the burgeoning interest in NFTs at that time. The first fundraiser, launched in November 2021, promised investors a share in a new crypto investment vehicle, while the second offering in December was intended to fund the creation of a “crypto hedge fund” employing advanced trading strategies.
Investor enthusiasm surged during this period, as NFT sales peaked. However, the project”s abrupt halt in June 2022 left many investors in limbo, unable to retrieve their funds. Organizers cited “proposed US regulations” as the reason for the suspension, coinciding with increased scrutiny from US regulatory bodies over NFT and crypto fundraising practices. The timing of this collapse, amidst a broader downturn in the crypto market, raised questions about the legitimacy of the project”s claims.
The Basis Markets investigation is part of a broader initiative by UK authorities to address digital asset-related crime, as highlighted in the Crown Prosecution Service”s Economic Crime Strategy 2025. This strategy identifies cryptocurrency and cyber-enabled fraud as significant threats that necessitate multi-agency collaboration. Operational leaders have been appointed to facilitate crypto asset recovery, underscoring the need for new tools and strategies to combat blockchain-based financial crimes.
The SFO”s proactive stance aligns with a global trend of heightened regulatory scrutiny of digital asset fraud. Regulatory bodies worldwide are increasingly examining fundraising methods that blur the lines between securities, collectibles, and investments. The outcome of the Basis Markets case could play a pivotal role in shaping how UK courts handle future crypto fraud allegations.
As discussions unfold on social media, investor attention remains focused on the implications of the SFO”s actions. The investigation reflects a growing recognition that regulatory uncertainty is no shield for those alleged to have committed fraud in the digital asset space. The results of this prosecution may influence the UK”s future approach to combating cryptocurrency-related crime as the sector continues to evolve.
