UK SFO Probes $28M Collapse of Basis Markets Crypto Project

• SFO opens first major crypto fraud probe into $28M Basis Markets collapse.
• Two men were arrested after police raids in London and West Yorkshire.
• Basis Markets blamed “US regulations” before abruptly shutting down in 2022.

The UK’s Serious Fraud Office (SFO) has opened an investigation into the collapse of Basis Markets, a cryptocurrency project that raised $28 million before abruptly shutting down. 

This call for an investigation comes at a time when the entire crypto market is falling sharply, with the total market cap dropping to about $2.95 trillion, Bitcoin and Ethereum sliding lower, and fear rising across all major altcoins.

Two Arrests After Raids in London and West Yorkshire

Earlier this week, SFO investigators, supported by the Metropolitan Police and West Yorkshire Police, carried out coordinated searches at properties in Herne Hill and near Bradford. Two men, one in his thirties and another in his forties, were arrested on suspicion of fraud and money laundering.

Officials say the investigation is still in early stages, but it marks the SFO’s first major case involving cryptocurrency.

A Promising Crypto Venture That Suddenly Collapsed

Basis Markets raised millions through two public fundraisers in late 2021. The first sale involved non-fungible tokens (NFTs) in November, followed by a second fundraising round in December. Investors were told the team planned to build an advanced “crypto hedge fund.”

But by June 2022, the project claimed it could no longer continue, blaming proposed new US regulations for derailing its operations. Many investors questioned whether this was a genuine regulatory setback—or simply an excuse to disappear with their money.

So far, the SFO has not released details on how the funds were used or what triggered the collapse, leaving many unanswered questions.

Trump-Linked Crypto Project Also Makes Headlines

In other news, Senators Elizabeth Warren and Jack Reed have asked the Treasury Department and the Department of Justice to investigate World Liberty Financial by December 1. Their request comes after a report claimed that the project sold its $WLFI tokens to wallets linked to North Korea’s Lazarus Group, a Russian sanctions-evading stablecoin, Iran’s NoBitex exchange, and the banned mixer Tornado Cash. 

World Liberty Financial is tied to DT Marks DEFI LLC, a company controlled by Donald Trump and his family, which reportedly owns billions of tokens and earns most of the project’s revenue.

Related: WLFI Reallocates Tokens After Past Phishing-Linked Wallet Attack