{"id":63315,"date":"2025-11-21T11:42:52","date_gmt":"2025-11-21T11:42:52","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/uk-launches-major-crypto-fraud-investigation-into-collapsed-basis-markets-project\/"},"modified":"2025-11-21T11:42:52","modified_gmt":"2025-11-21T11:42:52","slug":"uk-launches-major-crypto-fraud-investigation-into-collapsed-basis-markets-project","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/uk-launches-major-crypto-fraud-investigation-into-collapsed-basis-markets-project\/","title":{"rendered":"UK launches major crypto fraud investigation into collapsed Basis Markets project"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div data-site=\"CoinJournal\">\n<div class=\"-mt-16  mb-8  lg:-mt-20  rounded-md  shadow-md\">\n<div class=\"relative  z-10  post-article-image  rounded  overflow-hidden\" data-site=\"CoinJournal\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/11\/20251121_1334_Crypto-Fraud-Investigation_simple_compose_01kajpy0jtehm94c0q56t89jp5-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/11\/20251121_1334_Crypto-Fraud-Investigation_simple_compose_01kajpy0jtehm94c0q56t89jp5-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/11\/20251121_1334_Crypto-Fraud-Investigation_simple_compose_01kajpy0jtehm94c0q56t89jp5-smartcrop-750x375.png\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/11\/20251121_1334_Crypto-Fraud-Investigation_simple_compose_01kajpy0jtehm94c0q56t89jp5-smartcrop-363x181.png\" type=\"image\/jpeg\"\/>\n<\/picture>                            <\/div>\n<\/p><\/div>\n<ul>\n<li data-start=\"215\" data-end=\"886\">Two men were arrested during searches in London and near Bradford.<\/li>\n<li data-start=\"215\" data-end=\"886\">Basis Markets raised at least $28 million from investors in 2021.<\/li>\n<li data-start=\"215\" data-end=\"886\">Investors received valueless NFTs and tokens during the fundraising rounds.<\/li>\n<\/ul>\n<p data-start=\"215\" data-end=\"886\">UK authorities have opened a wide-scale criminal investigation into Basis Markets, bringing new attention to a failed crypto project that raised millions during the height of digital asset enthusiasm.<\/p>\n<p data-start=\"215\" data-end=\"886\">The <a href=\"https:\/\/www.gov.uk\/government\/news\/sfo-announces-investigation-into-28-million-crypto-scheme\">Serious Fraud Office revealed<\/a> on 20 November that it has begun examining how the project operated, how retail investors were drawn in with promises of low-risk arbitrage returns, and how at least $28 million disappeared following two fundraising rounds in 2021.<\/p>\n<p data-start=\"215\" data-end=\"886\">The renewed scrutiny arrives after years of silence and reflects growing concern over unregistered crypto schemes that expanded rapidly during the 2021 boom before collapsing without clear explanations.<\/p>\n<h2 data-start=\"470\" data-end=\"522\">Raids conducted in London and West Yorkshire<\/h2>\n<p data-start=\"524\" data-end=\"948\">SFO investigators, alongside local police officers, carried out coordinated raids in London and West Yorkshire earlier in the day.<\/p>\n<p data-start=\"524\" data-end=\"948\">Two men\u2014one in his 30s and another in his 40s\u2014were detained on suspicion of multiple fraud and money-laundering offences.<\/p>\n<p data-start=\"524\" data-end=\"948\">The SFO said the arrests mark a significant step in its inquiry into the scheme, which it described as a \u201csuspected fraudulent operation\u201d rather than a registered company.<\/p>\n<p data-start=\"950\" data-end=\"1292\">According to the agency, Basis Markets raised roughly $28 million (\u00a321.4 million) through two public fundraisers held in November and December 2021.<\/p>\n<p data-start=\"950\" data-end=\"1292\">Investors purchased non-fungible tokens (NFTs) that were marketed as a means of seeding a crypto hedge fund.<\/p>\n<p data-start=\"950\" data-end=\"1292\">The money was allegedly intended to support the creation and operation of this fund.<\/p>\n<p data-start=\"1294\" data-end=\"1620\">However, by June 2022\u2014six months after the capital raise\u2014investors were reportedly informed that the project could no longer move forward due to proposed new US regulations.<\/p>\n<p data-start=\"1294\" data-end=\"1620\">The SFO\u2019s investigation is expected to focus on the legitimacy of this explanation and what ultimately happened to the funds collected from investors.<\/p>\n<h2 data-start=\"1622\" data-end=\"1687\">Concerns over investor losses and regulatory explanations<\/h2>\n<p data-start=\"1689\" data-end=\"1998\">The SFO said it is not yet able to provide further details on the nature of the regulatory concerns cited by the project\u2019s operators.<\/p>\n<p data-start=\"1689\" data-end=\"1998\">Investigators are examining whether the statement about US regulatory changes was used as a pretext to halt operations and whether funds were improperly handled or diverted.<\/p>\n<p data-start=\"2000\" data-end=\"2358\">This case highlights the growing scrutiny facing crypto fundraising activities, particularly those involving NFTs and promises of high-yield investment vehicles such as hedge funds.<\/p>\n<p data-start=\"2000\" data-end=\"2358\">The collapse of Basis Markets adds to a string of high-profile cases in which retail investors have suffered losses amid insufficient transparency and minimal formal oversight.<\/p>\n<p data-start=\"2360\" data-end=\"2614\">Authorities have appealed for anyone who invested in or has knowledge of Basis Markets to come forward to assist the inquiry.<\/p>\n<p data-start=\"2360\" data-end=\"2614\">The SFO emphasized that tracking the flow of investor money will be central to determining whether fraudulent activity occurred.<\/p>\n<h2 data-start=\"2616\" data-end=\"2685\">SFO expands crypto capabilities amid rising enforcement needs<\/h2>\n<p data-start=\"2687\" data-end=\"2991\">The launch of this investigation comes as the SFO moves to strengthen its capabilities in digital asset enforcement.<\/p>\n<p data-start=\"2687\" data-end=\"2991\">Earlier this year, the agency secured more than \u00a38 million in additional funding over three years to support its ability to track, analyse, and recover crypto assets across jurisdictions.<\/p>\n<p data-start=\"2993\" data-end=\"3307\">SFO Director Nick Ephgrave said the agency is committed to pursuing individuals who misuse cryptocurrency to defraud the public.<\/p>\n<p data-start=\"2993\" data-end=\"3307\">\u201cWith our expanding cryptocurrency capability and growing expertise in this area, we are determined to pursue anyone who would seek to use cryptocurrency to defraud investors,\u201d he said.<\/p>\n<p data-start=\"3309\" data-end=\"3478\">Ephgrave added that Thursday\u2019s action represents an important milestone in the investigation and urged affected investors and potential witnesses to support the inquiry.<\/p>\n<p data-start=\"3480\" data-end=\"3705\" data-is-last-node=\"\" data-is-only-node=\"\">As the SFO deepens its work in digital asset enforcement, the Basis Markets case could become a key test of how the UK\u2019s fraud authorities handle complex crypto-linked financial misconduct in an evolving regulatory landscape.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/uk-launches-major-crypto-fraud-investigation-into-collapsed-basis-markets-project\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) Two men were arrested during searches in London and near Bradford. Basis Markets raised at least $28 million from investors in 2021. Investors received valueless NFTs and tokens during the fundraising rounds. UK authorities have opened a wide-scale criminal investigation into [&hellip;]<\/p>\n","protected":false},"author":3947362361,"featured_media":63316,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/63315"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362361"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=63315"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/63315\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/63316"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=63315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=63315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=63315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}