The United Kingdom’s Serious Fraud Office has launched a formal investigation into Basis Markets, a now-defunct cryptocurrency trading platform, following allegations of misappropriating approximately $28 million in investor capital. The probe centers on suspicions that client funds were improperly diverted from the platform, which abruptly ceased operations earlier this year.
In connection with the investigation, British authorities have made two arrests of individuals linked to the cryptocurrency fund. The suspects are currently assisting with inquiries regarding the alleged financial misconduct that led to the platform’s collapse.
The case represents one of the UK’s most significant cryptocurrency fraud investigations to date, highlighting growing regulatory scrutiny over digital asset operations. Basis Markets had positioned itself as a sophisticated trading venue offering algorithmic strategies to institutional and retail investors before its sudden shutdown.
Financial regulators have warned investors about the risks associated with unregulated crypto investment platforms, emphasizing the importance of due diligence. The investigation remains ongoing as authorities work to trace the movement of funds and determine the full scope of investor losses.
This development underscores the increasing focus by UK enforcement agencies on maintaining integrity within the cryptocurrency sector and protecting investors from fraudulent schemes.
