UK makes first major cryptocurrency arrest over $28 million market scandal

Britain’s Serious Fraud Office (SFO) has made its first major arrest in a crypto case, detaining two men from London and Bradford on suspicion of $28 million in fraud related to the collapse of the Basis Markets scheme.

The November 20, 2025 operation marks a pivotal change in UK cryptocurrency enforcement. Authorities are increasing efforts to combat sophisticated digital asset crimes.

UK SFO launches groundbreaking crypto investigation

The Serious Fraud Office announced the arrest of a man in his 30s in Herne Hill, London, and a man in his 40s near Bradford. The raid was carried out in conjunction with Metropolitan Police and West Yorkshire Police and focused on fraud and money laundering related to the Basis Markets scheme.

This investigation is the SFO’s first significant step against crypto crime and reflects an intensification of its strategy against digital asset fraud. This joint operation highlights the unique challenges of prosecuting cases involving blockchain technology and NFTs.

SFO Director-General Nick Ephgrave confirmed that the SFO has developed specialist resources targeting crypto fraud. With the rise of digital asset schemes, these features are considered important for investor protection.

Attorney General Ellie Reeves said such fraud posed a serious threat to the UK economy. She warned that crypto fraud undermines confidence in the financial sector and pledged government support for law enforcement.

The SFO called on victims and whistleblowers to contact BasisMarkets@sfo.gov.uk. The public offering suggests that authorities expect more victims and that the case could set an important legal precedent.

The rise and fall of the basis market

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

The second offering was held in December 2021 and provided funds for the creation of a “cryptocurrency 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 was abruptly halted. Organizers cited “proposed U.S. regulations” as the reason for the cancellation, just as U.S. government agencies began widespread oversight of NFT and crypto fundraising practices.

The bankruptcy left investors unable to access the $28 million they had raised. The timing of the project coincided with a broader downturn in the crypto market in 2022, raising concerns that regulatory changes could not fully explain the failure.

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

According to a study by the U.S. Treasury Department, approximately 65% ​​of NFT fraud cases involve misleading marketing. This rate of serious fraud highlights the regulatory and enforcement challenges facing authorities.

Impact on UK cryptocurrency crackdown

The Basis Market investigation comes as the UK ramps up efforts to tackle crime related to digital assets. The Crown Prosecution Service’s Economic Crime Strategy 2025, published in May 2025, identified virtual currencies and cyber-based fraud as high-priority threats that require multi-agency collaboration.

The authorities have appointed an operational head of crypto asset recovery and created a framework to strengthen cooperation between the CPS, SFO and law enforcement agencies.

These reforms demonstrate the recognition that new tools and strategies are needed to combat blockchain-based financial crime.

The SFO’s move to prosecute cases related to cryptocurrencies is in line with a global trend of increasing enforcement against digital asset fraud.

Around the world, regulators are scrutinizing financing methods that blur the lines between securities, collectibles, and investments. The Basis Markets case could help define how UK courts approach crypto fraud charges in the future.

Social media reactions highlight investor attention to execution. Bitcoin Archive highlighted the importance of this investigation as the SFO pursues large-scale cryptocurrency prosecutions.

This case illustrates the greater regulatory risk for digital asset fundraisers who lack legal clarity. The SFO’s willingness to pursue complex crypto cases sends a message that regulatory uncertainty cannot protect those accused of fraud.

The outcome of this prosecution could shape how aggressively the UK approaches cryptocurrency crime in the future as the field evolves.

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