The Serious Fraud Office (SFO) today issued an appeal for investors to come forward with any information they hold about the collapse of a $28 million cryptocurrency scheme called Basis Markets.
The SFO launched an investigation into the suspected fraudulent scheme with two raids in West Yorkshire and London.
Investigators, supported by the Metropolitan Police and West Yorkshire Police, searched properties in Herne Hill and near Bradford, arresting 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 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 “crypto hedge fund”.
In June 2022 investors were informed that, due to proposed new US regulations, the project could no longer proceed as planned.
This is the first major cryptocurrency case announced by the SFO.
Nick Ephgrave QPM, 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
Fraud is a destructive crime, that harms communities and destroys business confidence. Those committing fraud aren’t just taking away from hard-working members of the public but undermining British values of fairness and playing by the rules.
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 [email protected].
