The Serious Fraud Office (SFO) of the UK has initiated a major investigation into the failure of a cryptocurrency scheme that raised $28M, indicating its desire to crack down on large-scale crypto fraud. The case has led to the arrest of two men in connection, and it is the first high-profile crypto investigation announced publicly by the SFO.
The Rise and Fall of Basis Markets
The project, Basis Markets, which was the focus of the investigation, offered its investors a so-called crypto hedge fund that would bring returns to them on the basis of sophisticated trading. Later in 2021, it sold funds in two rounds: in November, an NFT sale, and in December, a token offering. Both programs professed to aid the operational birth of the fund and give future returns to investors.
The project became problematic by June 2022. Investors had been informed that it could not go on because of the expected regulatory changes in the U.S. Contacts with supporters were shortly terminated, and no refunds or returns were made. There were also allegations that part of the money was misdirected, and instead of being used to fund the project, it was given to the founders.
SFO Investigation and Arrests
Coordinated raids by SFO investigators with the assistance of the Metropolitan Police and West Yorkshire Police were conducted in London and West Yorkshire on November 20, 2025. Two males in their 30s and 40s were arrested on suspicion of committing fraud by false representation, conspiracy to defraud, and money laundering. The case is still in its investigative phase, and the police are asking people with any information to come forward.
Statements from the SFO
SFO Director Nick Ephgrave highlighted that the agency is becoming increasingly skilled in cryptocurrency-related investigations and said that the office would do everything it could to target individuals who use digital currencies to defraud investors. Solicitor General Ellie Reeves further explained that fraud is not only damaging individual victims, but it is also damaging the trust and faith of the people in the financial system. The SFO has established a specific email, BasisMarkets@sfo.gov.uk, to allow investors and whistleblowers to pass information along.
Did you invest in Basis Markets?
We’re appealing to anyone with knowledge of this crypto scheme to get in touch with our team.
Hear from SFO investigator Martin Hall on why your information could help our inquiries⬇️ pic.twitter.com/Q3jx7HwjUx
— Serious Fraud Office (SFO) (@UKSFO) November 20, 2025
Implications for Investors
The Basis Markets meltdown highlights the dangers of crypto fundraising, especially when such schemes are offering high returns with little transparency. The investors are reminded to do due diligence and probe the use of funds, whether the projects have an actual roadmap of operation, and whether the promises that the founders make are workable.
Conclusion
This is the first investigation made by the SFO, and it underscores its willingness to address such massive cryptocurrency fraud. In the case of the UK crypto market, it acts as a caution to the projects that are not transparent or are based on unrealistic promises. This case also indicates another emerging global behavior of regulators being serious about digital asset fraud, which means that crypto enterprises will no longer be able to avoid legal control.
