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The UK Serious Fraud Office investigates the collapse of a $28 million encryption fund, two people arrested.

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ChainCatcher news, the UK Serious Fraud Office (SFO) announced on Thursday that it is investigating the now-defunct crypto project Basis Markets, which suddenly shut down after raising approximately $28 million through NFT membership sales and token issuance at the end of 2021. Investigators have executed search warrants in London and West Yorkshire, arrested two men, and seized digital devices and documents. According to the SFO, Basis Markets had originally promised investors low-risk returns, but by June 2022, investors were informed that “the project could not proceed as planned due to new proposed regulations in the US.” The investigation indicates that funds may have been directly transferred to personal wallets controlled by an anonymous team. SFO director Nick Ephgrave stated, “With our expanding capabilities in cryptocurrency investigations, we are determined to hold accountable anyone attempting to defraud investors using cryptocurrencies.” The BASIS token fell nearly 40% following the announcement of the investigation by UK authorities.

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