The UK's Serious Fraud Office investigates the collapse of a $28 million cryptocurrency fund, two arrested

The UK's Serious Fraud Office (SFO) announced on Thursday that it is investigating the now-defunct crypto project Basis Markets, which suddenly shut down after raising approximately $28 million through NFT membership sales and token issuance at the end of 2021.

Investigators have executed search warrants in London and West Yorkshire, arrested two men, and seized digital devices and documents. According to the SFO, Basis Markets had originally promised low-risk returns for investors, but by June 2022, investors were told that "the project could not proceed as planned due to new proposed regulations in the U.S." Investigations indicate that funds may have been directly transferred to personal wallets controlled by an anonymous team. SFO Director Nick Ephgrave stated, "With our ever-expanding cryptocurrency investigation capabilities, we are determined to hold accountable anyone attempting to defraud investors using cryptocurrency." The BASIS token saw a nearly 40% drop after UK authorities announced the investigation.