SFO Uncovers $28 Million Cryptocurrency Scam, Revealing Deceptive NFT Operation

The UK Serious Fraud Office (SFO) has detained two individuals in its inaugural large-scale investigation into cryptocurrency-related fraud,

, a venture that collected $28 million from backers via NFT and token offerings before disappearing with the money. The arrests, which took place during synchronized operations in London and West Yorkshire, of the SFO’s attention to crimes involving digital assets. The agency referred to the matter as a "suspected fraudulent scheme," with authorities , money laundering, and the misuse of investor funds.

Basis Markets, which marketed itself as a decentralized hedge fund providing "delta-neutral" returns through arbitrage, conducted two fundraising rounds at the end of 2021. The first was an NFT sale in November 2021, followed by a token sale in December 2021, together amassing $28 million. Investors were assured a portion of trading profits and governance participation, yet investigators

into the founders’ personal accounts instead of the project’s treasury. The operation collapsed in June 2022—citing "proposed US regulations" as justification—leaving investors empty-handed and casting doubt on the team’s legitimacy. Warning signs included unverifiable claims of a combined 80 years’ experience in finance and crypto, along with .

The SFO’s investigation has been likened to the

, who was found guilty of laundering £5 billion in . Director Nick Ephgrave highlighted the agency’s expanded expertise in crypto, stating, "We are committed to holding accountable anyone who exploits cryptocurrency to deceive investors." The SFO also aimed at strengthening crypto asset recovery initiatives.

Those who invested in Basis Markets now confront a familiar danger: secretive teams making extravagant promises. The project’s promotional materials

could yield $18,000 in monthly profits, later adjusted to a total of $30,000—figures that investigators found unrealistic. The founders’ extravagant purchases, such as luxury watches showcased on the project’s Discord, about possible fund misuse. One founder, Adam Cobb-Webb, had previously been for engaging in spoofing oil futures trades.

The SFO is encouraging anyone with relevant information to come forward, suggesting that more arrests could follow. As regulators globally ramp up oversight of crypto fundraising, this case may

for how authorities tackle large-scale token offerings and NFT-related fraud.