Two people have been arrested in connection with the UK's Serious Fraud Office's investigation into the collapse of a $28 million crypto fund.

According to an official announcement, the UK's Serious Fraud Office (SFO) announced on Thursday that it is investigating the defunct crypto project Basis Markets, which abruptly shut down after raising approximately $28 million through NFT membership sales and token offerings 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 SFO, Basis Markets initially promised investors low-risk returns, but by June 2022, investors were told that "the project cannot proceed as planned due to newly proposed regulations in the United States." Investigations suggest that funds may have been transferred directly to personal wallets controlled by an anonymous team.

SFO Director Nick Ephgrave stated, "With our expanding cryptocurrency investigative capabilities, we are determined to bring anyone attempting to defraud investors using cryptocurrencies." The BASIS token initially fell nearly 40% after UK authorities announced the investigation.