The Serious Fraud Office (SFO) has launched a significant investigation into Basis Markets, marking its first major move into the crypto and NFT investment landscape. The investigation centres on the firm raising approximately £21.4 million ($28 million) from UK investors through an NFT-based investment product. 

Basis markets secured these funds via two public fundraising rounds in 2021, promoting what it describes as an advanced automated trading strategy. Investors were encouraged to purchase NFTs that functioned as “membership passes”, granting access to the firms proprietary trading tools. 

The proposition was deliberately compelling. Basis Markets showcased professional dashboards portraying low-risk investments delivering consistently high yields. These presentations were reinforced with references to scientific and technical expertise, creating a strong aura of legitimacy and authority. However, it is now believed that much of this information was fabricated or materially misleading.  

Approximately one year later, investors were informed that the firm was withdrawing from operations, citing adverse legislation changes in the United States. This explanation coincided with the introduction of the Lummis-Gillibrand bill, which was intended to introduce regulatory clarity and consumer protection, rather than diminish legitimate trading activities. Investigators believe the legislation was used as a pretext to generate regulatory confusion and construct an exit strategy.  

The result was a situation in which investors were left with little practical recourse against the company. The apparent exploitation of regulatory uncertainty heightened scrutiny and ultimately triggered enforcement action. 

In response, the SFO has arrested two individuals on suspicion of multiple fraud and money laundering offences following coordinated police raids in London and West Yorkshire. These arrests signal a decisive escalation in the UK’s approach to crypto-related fraud and suggest a new era of enforcement in digital asset markets.