The UK's Serious Fraud Office (SFO) is investigating the case.
The agency has called it the first major cryptocurrency-related case in the UK.
According to law enforcement, Basis Markets raised approximately $28 million in two funding rounds. The first was held in November 2021 through the sale of non-fungible tokens (NFTs), and the second in December 2021. The project's founders promised to use the proceeds to create a cryptocurrency hedge fund. However, in June 2022, investors were informed that further development of the projects was impossible.
"We have become more capable of investigating cryptocurrency crime. With our growing expertise in this area, we will pursue anyone who attempts to use cryptocurrency to defraud investors," said SFO Director Nick Ephgrave.
British law enforcement has not yet revealed what became of the $28 million. In May, UK Chancellor of the Exchequer Rachel Reeves unveiled new regulations for digital assets. According to the crypto exchange regulations, dealers and agents will be required to comply with the same requirements as traditional financial institutions.