The Serious Fraud Office (SFO) has launched its first major crypto investigation into suspected fraud in a case connected to a hedge fund.

The Serious Fraud Office (SFO) has issued an appeal for investors to come forward with any information they hold about the collapse of a $28 million (£21m) cryptocurrency scheme called Basis Markets.  

The SFO spearheaded the investigation into the suspected fraudulent scheme with two raids in West Yorkshire and London.   

SFO investigators, supported by the Metropolitan Police and West Yorkshire Police, searched properties in Herne Hill and near Bradford. They arrested two men, one in his thirties and another in his forties, on suspicion of multiple fraud and money laundering offences.   

Basis Markets raised approximately US$28m (£21m) via two public fundraisers, one in November 2021 via the sale of non-fungible tokens and the other in December 2021, using funds to create a so-called “crypto hedge fund.”  

Investors were informed in June 2022 that due to proposed new US regulations the project involving the crypto hedge fund could no longer proceed as planned.  

The probe is the first major cryptocurrency case announced by the SFO.   

Nick Ephgrave, director of the Serious Fraud Office (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 and support our enquiries.” 

Solicitor General Ellie Reeves MP said:  “As Solicitor General, I will resolutely support the Serious Fraud Office to tackle the scourge of cryptocurrency fraud and protect consumers. I urge anyone with information to come forward and assist the SFO with their investigations.” 

• Investors can contact the SFO with information about this investigation at This email address is being protected from spambots. You need JavaScript enabled to view it..