The UK’s Serious Fraud Office (SFO) made its first major arrests in a cryptocurrency case, detaining two men in London and Bradford over an alleged $28 million fraud linked to the collapse of the Basis Markets scheme.

The November 20, 2025, operation marks a pivotal shift in UK crypto enforcement. Authorities are expanding efforts to counter sophisticated digital asset crime.

UK SFO Launches Landmark Crypto Investigation

The Serious Fraud Office announced the arrests of one man in his thirties in Herne Hill, London, and another in his forties near Bradford. Raids, conducted in collaboration with the Metropolitan and West Yorkshire Police, focused on fraud and money laundering linked to the Basis Markets scheme.

This investigation is the SFO’s first significant step into crypto crime, reflecting its growing strategy against digital asset fraud. The joint operation highlights the unique challenges of prosecuting cases that involve blockchain technology and NFTs.

SFO Director Nick Ephgrave confirmed the agency has developed specialized resources targeting cryptocurrency fraud. With digital asset schemes increasing, these capabilities are seen as critical for investor protection.

Solicitor General Ellie Reeves stated that such fraudulent activity poses a serious threat to the UK economy. She pledged government backing for enforcement, warning that crypto fraud erodes trust in the financial sector.

The SFO called for victims and whistleblowers to contact BasisMarkets@sfo.gov.uk. This public appeal suggests authorities anticipate more victims and that the case could set important legal precedents.

The Rise and Collapse of Basis Markets

Basis Markets raised $28 million through two public NFT ($0.00)-based fundraisers in late 2021, capitalizing on the surge in NFT market activity that year. The first, in November 2021, focused on NFT sales, promising investors a stake in a new crypto investment vehicle.

The second offering came in December 2021, with funds intended to create a “crypto hedge fund” that employs advanced trading strategies. Investor momentum was high, as NFT sales and enthusiasm for crypto projects peaked during this period.

However, in June 2022, the project abruptly halted. Organizers cited “proposed US regulations” as the reason for its suspension just as US agencies were rolling out broader scrutiny of NFT and crypto fundraising practices.

This collapse left investors unable to access the $28 million raised. The project’s timing, coinciding with broader crypto market downturns in 2022, raised concerns that regulatory changes may not fully explain the failure.

NFT-based fundraising became a common approach in 2021, with projects leveraging digital collectibles to attract capital.

US Treasury research shows that about 65% of NFT fraud cases involve misleading marketing. This significant rate of fraud underlines the regulatory and enforcement challenges facing authorities.

Implications for UK Crypto Enforcement

The Basis Markets probe comes as the UK intensifies efforts against digital asset-related crime. The Crown Prosecution Service’s Economic Crime Strategy 2025, published in May 2025, identified cryptocurrency and cyber-enabled fraud as high-priority threats that require multi-agency coordination.

Authorities have appointed operational leads for cryptoasset recovery and created frameworks to boost cooperation between the CPS, SFO, and law enforcement.

These reforms show a recognition that new tools and strategies are needed to address blockchain-based financial crime.

The SFO’s move to prosecute crypto-related cases aligns with a global trend of increased enforcement against digital asset fraud.

Worldwide, regulators are scrutinizing fundraising methods that blur lines between securities, collectibles, and investments. The Basis Markets case could help define how UK courts approach crypto fraud charges going forward.

Social media reaction highlights investor attention to enforcement. Bitcoin Archive highlighted the significance of the SFO’s pursuit of large-scale crypto prosecutions with this investigation.

This case signals greater regulatory risk for digital asset fundraisers that lack legal clarity. The SFO’s willingness to pursue complicated crypto cases sends a message that regulatory uncertainty will not protect those accused of fraud.

The outcome of this prosecution could shape how aggressively the UK approaches future crypto crime as the sector evolves.

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