Lib Dems call for inquiry into Farage Bitcoin deal
Lib Dems call for inquiry into Farage Bitcoin deal
The Liberal Democrats have urged the UK’s financial oversight body to examine Nigel Farage’s involvement in a £2 million cryptocurrency transaction. As leader of Reform UK, Farage is a shareholder in the British Bitcoin company Stack and featured in a promotional video celebrating its latest investment. The party is seeking to determine if his actions might represent ‘attempted interference in the cryptocurrency market’ or ‘attempted market abuse.’
“Mr Farage is embracing the 21st century. He bought the [£2m of] crypto on behalf of Stack and not personally,” stated a spokesperson for Farage, framing the event as a “photo call.”
Farage has invested £215,000 into the company, holding 6.3% of its shares via his investment vehicle Thorn In The Side Ltd. Labour criticized the venture as “a bid to line his own pockets,” highlighting Reform UK’s focus on self-interest over public welfare. The BBC has sought Stack’s response to the allegations.
Bitcoin, a digital form of currency, operates without physical representation and is traded across computer networks. In the promotional video announcing Stack’s £2m Bitcoin purchase, Farage appeared alongside the company’s chair Kwasi Kwarteng, who briefly served as UK chancellor during Liz Truss’s premiership. ‘I have long been one of the UK’s few political advocates for Bitcoin, recognizing the role digital currencies will play in the future of business and finance,’ Farage noted in a press release.
Concerns over conflict of interest
Liberal Democrats deputy leader Daisy Cooper warned that Farage’s actions could mirror Donald Trump’s tactics, prioritizing personal financial gain over the public good. ‘The FCA must investigate whether Farage’s plans to cash in on crypto could potentially amount to market abuse and a conflict of interest,’ she added. ‘We cannot allow political leaders to treat the financial markets like a personal piggy bank.’
“We cannot allow political leaders to treat the financial markets like a personal piggy bank to line their own pockets,” Cooper emphasized.
An FCA spokesperson confirmed: ‘We will review the letter and respond directly.’ Stack was co-founded by Paul Withers, who also owns Direct Bullion, for which Farage is a brand ambassador. According to the MPs register of interests, Direct Bullion has paid Farage £226,200 for promotional work.
Reform UK’s website states it does not accept anonymous donations, with amounts exceeding £500 requiring verification. Keir Starmer has proposed banning cryptocurrency donations to UK political parties in response to a review of foreign financial influence. This measure is especially pertinent to Reform UK, which is the only party at Westminster known to have received digital currency contributions.
Last May, Farage announced his party would accept Bitcoin donations. In October, he revealed that a “couple” of such donations had already been received. Parties in the UK must verify sources for donations over £500, including individuals listed on the electoral register. A Farage representative noted that ‘all parties need donations to run campaigns’ and cited Labour’s union funding as an example.
Sign up for our Politics Essential newsletter to read top political analysis, gain insight from across the UK, and stay up to date with the big moments. It will be delivered straight to your inbox every weekday.