The UK’s Serious Fraud Office (SFO) has launched an investigation into a $28 million cryptocurrency project collapse following the arrests of two suspects on suspicion of fraud and money laundering. The investigation marks the SFO’s first major foray into the cryptocurrency sector. Basis Markets raised funds through NFTs in late 2021 for a planned cryptocurrency hedge fund. However, investors were informed in June 2022 that the project had failed due to new U.S. regulations. The SFO has not disclosed further details of their probe. On Thursday, investigators from the SFO and local police conducted raids across London and West Yorkshire, resulting in arrests. SFO Director Nick Ephgrave remarked: ‘As we enhance our capabilities and expertise within the crypto space, we are committed to pursuing those who attempt to defraud investors using cryptocurrency.’