The United Kingdom’s Serious Fraud Office (SFO) has formalized an exhaustive Basis Markets investigation, a hedge fund accused of defrauding its investors. Nick Ephgrave, director of the agency, confirmed the detention of two individuals and stated that they will decisively pursue those who use digital assets to scam. This event marks a turning point in British regulatory surveillance over unregistered investment schemes.
On the other hand, data reveals that the project managed to raise 28 million dollars through two rounds of public funding in late 2021. Furthermore, authorities executed simultaneous raids in Herne Hill and Bradford, seizing multiple digital devices and documents essential to the case. The funds, obtained through NFT sales and token offerings, were meant to finance automated arbitrage strategies for retail users.
However, promises of stable returns vanished when capital was allegedly diverted to personal wallets controlled by the anonymous team. It is relevant to mention that Basis Markets ceased operations in June 2022, using alleged new US regulations as an excuse for its closure. Independent investigations identified Adam Cobb-Webb as a key figure, who had already been sanctioned for futures market manipulation previously.
Will British justice be able to recover the lost funds of affected investors?
The market impact was immediate after the news broke, causing the BASIS token to plummet nearly 40% in a few hours. Although the asset had been practically inactive since April 2022, the massive sell-off reflects the residual panic among remaining holders. This collapse underscores the extreme dangers of trusting capital in opaque projects within the volatile cryptocurrencies sector.
Finally, the SFO has asked victims to come forward to provide information that helps trace the flow of the stolen money. Therefore, the coming months will be critical to determine if the seized digital evidence will allow restitution to those affected, while pressure intensifies on those responsible for the fraudulent scheme. The community hopes this case sets a deterrent precedent against future financial crimes in the digital space.
