The Serious Fraud Office (SFO) has arrested two men in connection with a suspected £20m cryptocurrency fraud. The arrests followed raids on two properties in West Yorkshire and London as the agency launched an investigation into a scheme called Basis Markets.
Basis Markets, described by the SFO as a “suspected fraudulent scheme” and not a registered company, is alleged to have raised millions of pounds through two public fundraisers in November and December 2021. Investors were told the money would be used to create a “crypto hedge fund”.
Six months later, in June 2022, investors were reportedly informed that proposed new US regulations were preventing the project from proceeding. The SFO’s investigation is focusing on this announcement and the fate of the investors’ money. Two men, one in his 30s and another in his 40s, were arrested on suspicion of fraud and money laundering.
Nick Ephgrave, director of the SFO, said: “With our expanding crypto currency capability and growing expertise in this area, we are determined to pursue anyone who would seek to use cryptocurrency to defraud investors. Today’s action is an important step in our investigation, and we’re urging anyone with information to come forward.”
The agency noted this is the first major cryptocurrency case it has announced. In June, the SFO secured over £8m in extra funding over three years to strengthen its ability to recover criminal assets, including crypto assets.
