UK Cracks Down: Two Arrested in $28M Basis Markets Crypto Fraud

UK authorities arrested two over the $28M Basis Markets crypto and NFT fraud. The project collapsed in 2022 after raising funds, with investors left out of pocket. The SFO’s investigation signals tougher crypto crime enforcement.

UK authorities have arrested two individuals in connection with the collapse of Basis Markets, a cryptocurrency and NFT investment scheme that raised approximately $28 million (£21 million) from investors in late 2021. The Serious Fraud Office (SFO), in collaboration with police in London and Bradford, conducted raids and detained the suspects on suspicion of fraud and money laundering. Basis Markets had promised high returns through NFT-based fundraisers and a crypto hedge fund, but abruptly ceased operations in June 2022, leaving investors unable to access their funds. Investigations revealed that funds were sent directly to the founders’ personal wallets, with no product delivered and performance data likely falsified. The SFO’s actions mark its first major foray into crypto crime, signaling increased regulatory scrutiny and enforcement against digital asset fraud in the UK. The case is ongoing and may set a precedent for future prosecutions involving NFTs and cryptocurrencies.