The NFT sale raised around 32,000 SOL and the BASIS token sale raised roughly $20.7 million in USDC in 2021, before collapse amid regulatory concerns.

The scheme collapsed in June 2022 after regulatory concerns, leaving investors with losses.

Both suspects are in their 30s and 40s, held on suspicion of multiple fraud and money-laundering offences.

Basis Markets claimed to offer delta-neutral yields from basis trades and boasted extensive experience from founders, but no product was delivered and operations halted in mid-2022 with funds unrecovered.

Context points to growing global regulatory scrutiny of NFT and crypto fundraising, with Basis Markets highlighting enforcement gaps.

Basis Markets has not responded to requests for comment as the investigation proceeds.

Basis Markets raised about £21.4 million in 2021 through two public fundraisers, including an NFT sale and a BASIS token sale, promising governance and profits from a decentralized pool.

The Serious Fraud Office (SFO) carried out raids in West Yorkshire and London, arresting two men in its first major probe into cryptocurrency fraud linked to the Basis Markets collapse, which raised about £21.4 million from investors.

SFO director stressed the agency’s commitment to pursuing crypto fraud and urged the public to provide information to aid inquiries.

Public and industry reaction underscores higher regulatory risk for crypto fundraisers and could influence how UK courts handle crypto fraud charges.

The Basis Markets case could shape UK courts’ interpretation of fraud laws in blockchain and NFT fundraising, potentially guiding enforcement ahead.

One founder, known as “TraderSkew” and identified as Adam Cobb-Webb, later faced a CFTC sanction in August 2023 for spoofing in WTI crude futures, with a $150,000 fine and a one-year trading ban.