The United Kingdom’s Serious Fraud Office (SFO) has made a landmark entry into crypto enforcement by arresting two men linked to the Basis Market scandal in 2021. The crypto trading platform raised $28 million from two fundraisers by selling non-fungible tokens (NFTs). They promised to use the fund to create a crypto hedge fund.
Later, the project leaders told investors that their project could not go forward due to “proposed US regulations”. However, things turned out to be bad as the Basis Markets scheme was identified as a suspected fraudulent scheme.
The two men alleged to have orchestrated fraud were arrested during raids in London and West Yorkshire. The Serious Fraud Office has requested stakeholders to come forward and provide any details related to the $28 million crypto fraud scheme.
“With our expanding cryptocurrency capability and growing expertise in this area, we are determined to pursue anyone who would seek to use cryptocurrency to defraud investors,” said SFO Director Nick Ephgrave.
Crypto devotees believed in Basis Markets
Being gloom-struck by a big financial loss, a crypto enthusiast wrote on X: “Basis Markets was the first massive loss I ever took in crypto in 2022, which derailed my life massively for years.”
The person was deeply attracted by the crypto project’s innovative ideas ahead of its time.
UK’s move from observers to enforcers
The UK SFO’s move is something that crypto communities, including experts, have deeply looked into. This applause comes as it marks the first time the country’s law enforcement system has considered a crypto project’s collapse a serious fraud case. The country’s crypto realm is gradually expanding with numerous projects and initiatives.
However, this rapid growth has also enticed bad players and risky fundraising schemes. As a response, law enforcement has become stronger, axing fraudulent activities.
When crypto experiences positive growth through wider adoption and integration, chances are high that bad actors will wait to target innocent investors. This can only be controlled through the active involvement of regulators and crypto enforcement agencies.
