UK authorities have initiated a criminal investigation into Basis Markets, a defunct crypto hedge fund accused of defrauding investors of $28 million. The Serious Fraud Office (SFO) has arrested two individuals in London and near Bradford on charges of fraud and money laundering. The SFO claims that Basis Markets operated as an unregistered investment scheme, raising funds through NFT and token sales in late 2021 before its sudden closure in June 2022. The agency is seeking assistance from investors as part of the ongoing investigation.