UK Fraud Office Makes First Major Crypto Arrests in $28M Basis Markets Probe

The UK’s Serious Fraud Office (SFO) has arrested two individuals in connection with the collapse of Basis Markets, a crypto venture that allegedly defrauded investors of $28 million. The suspects—a man in his 40s from Herne Hill and another in his 30s from Bradford—were detained on suspicion of fraud and money laundering following coordinated raids. No charges have yet been filed.

SFO Director Nick Ephgrave framed the operation as a watershed moment, citing the agency’s enhanced technical capabilities to investigate crypto-related crimes. 'This marks our first major crypto fraud case,' Ephgrave stated, emphasizing the SFO’s commitment to pursuing bad actors exploiting digital assets.

Investigators uncovered red flags early: Crypto Sleuth Investigations exposed discrepancies in Basis Markets’ team identities and inflated professional claims. The case represents one of the most conspicuous alleged rug pulls from the 2021 crypto boom.