The Serious Fraud Office has opened its first major cryptocurrency investigation into Basis Markets, a $28 million scheme. Investigators, supported by the Metropolitan Police and West Yorkshire Police, conducted raids in West Yorkshire and London and arrested two men on suspicion of fraud and money laundering. Basis Markets raised approximately US$28 million through two public fundraisers, one in November 2021 via NFT sales and the other in December 2021 to seed a crypto hedge fund.
In June 2022, investors were informed that the project could not proceed as planned due to proposed new US regulations. The SFO said it would pursue those who used cryptocurrency to defraud investors as its crypto capability expands.
This is the first major cryptocurrency case announced by the SFO. Nick Ephgrave, Director of the Serious Fraud Office, said that with expanding crypto capability and growing expertise in this area, the agency is determined to pursue anyone who would seek to use cryptocurrency to defraud investors. Solicitor General Ellie Reeves MP said that fraud is a destructive crime that harms communities and destroys business confidence, and that those committing fraud undermine British values of fairness and playing by the rules.
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