The UK's Fraud Office is investigating a $28 million cryptocurrency crash incident

According to Reuters, the UK's Serious Fraud Office (SFO) announced on Thursday that it is investigating a $28 million cryptocurrency project collapse, calling on investors to come forward with information after two men were arrested on suspicion of fraud and money laundering.

The SFO stated that this is its first major cryptocurrency investigation. Basis Markets raised funds through two public fundraising events via NFTs at the end of 2021 and used the funds to create a cryptocurrency hedge fund. The SFO noted that in June 2022, investors were informed that the project had fallen through due to proposed new regulatory measures in the U.S. The SFO has not been able to provide further details.

Earlier on Thursday, SFO investigators and police carried out two raids in London and West Yorkshire in northern England, leading to the arrest of the two men. SFO Director Nick Ephgrave stated, "As we continue to expand our capabilities and enhance our expertise in the cryptocurrency space, we are determined to pursue any criminals attempting to defraud investors using cryptocurrency."