The UK’s Critical Fraud Workplace (SFO) made its first main arrests in a cryptocurrency case, detaining two males in London and Bradford over an alleged $28 million fraud linked to the collapse of the Foundation Markets scheme.
The November 20, 2025, operation marks a pivotal shift in UK crypto enforcement. Authorities are increasing efforts to counter subtle digital asset crime.
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UK SFO Launches Landmark Crypto Investigation
The Critical Fraud Workplace introduced the arrests of 1 man in his thirties in Herne Hill, London, and one other in his forties close to Bradford. Raids, performed in collaboration with the Metropolitan and West Yorkshire Police, centered on fraud and cash laundering linked to the Foundation Markets scheme.
This investigation is the SFO’s first important step into crypto crime, reflecting its rising technique towards digital asset fraud. The joint operation highlights the distinctive challenges of prosecuting circumstances that contain blockchain know-how and NFTs.
SFO Director Nick Ephgrave confirmed the company has developed specialised sources focusing on cryptocurrency fraud. With digital asset schemes rising, these capabilities are seen as important for investor safety.
Solicitor Normal Ellie Reeves acknowledged that such fraudulent exercise poses a critical risk to the UK financial system. She pledged authorities backing for enforcement, warning that crypto fraud erodes belief within the monetary sector.
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The Rise and Collapse of Foundation Markets
Foundation Markets raised $28 million via two public NFT-based fundraisers in late 2021, capitalizing on the surge in NFT market exercise that yr. The primary, in November 2021, centered on NFT gross sales, promising traders a stake in a brand new crypto funding automobile.
The second providing got here in December 2021, with funds meant to create a “crypto hedge fund” that employs superior buying and selling methods. Investor momentum was excessive, as NFT gross sales and enthusiasm for crypto initiatives peaked throughout this era.
Nonetheless, in June 2022, the challenge abruptly halted. Organizers cited “proposed US regulations” as the rationale for its suspension simply as US businesses have been rolling out broader scrutiny of NFT and crypto fundraising practices.
This collapse left traders unable to entry the $28 million raised. The challenge’s timing, coinciding with broader crypto market downturns in 2022, raised considerations that regulatory modifications might not absolutely clarify the failure.
NFT-based fundraising turned a standard method in 2021, with initiatives leveraging digital collectibles to draw capital.
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US Treasury analysis reveals that about 65% of NFT fraud circumstances contain deceptive advertising and marketing. This important price of fraud underlines the regulatory and enforcement challenges going through authorities.
Implications for UK Crypto Enforcement
The Foundation Markets probe comes because the UK intensifies efforts towards digital asset-related crime. The Crown Prosecution Service’s Financial Crime Technique 2025, revealed in Could 2025, recognized cryptocurrency and cyber-enabled fraud as high-priority threats that require multi-agency coordination.
Authorities have appointed operational leads for cryptoasset restoration and created frameworks to spice up cooperation between the CPS, SFO, and regulation enforcement.
These reforms present a recognition that new instruments and methods are wanted to deal with blockchain-based monetary crime.
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The SFO’s transfer to prosecute crypto-related circumstances aligns with a worldwide pattern of elevated enforcement towards digital asset fraud.
Worldwide, regulators are scrutinizing fundraising strategies that blur traces between securities, collectibles, and investments. The Foundation Markets case may assist outline how UK courts method crypto fraud fees going ahead.
Social media response highlights investor consideration to enforcement. Bitcoin Archive highlighted the importance of the SFO’s pursuit of large-scale crypto prosecutions with this investigation.
JUST IN: 🇬🇧 UK begins giant crypto prosecutions with first main investigation, arresting two males over $28 million Foundation Markets NFT sale: Press launch. pic.twitter.com/UerYhrtH8k
— Coin Headlines (@coinheadline) November 20, 2025
This case alerts larger regulatory threat for digital asset fundraisers that lack authorized readability. The SFO’s willingness to pursue sophisticated crypto circumstances sends a message that regulatory uncertainty won’t defend these accused of fraud.
The result of this prosecution may form how aggressively the UK approaches future crypto crime because the sector evolves.
