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 BasisMarkets@sfo.gov.uk.
