Liberal Democrats Seek FCA Probe into Farage’s Crypto Investment Deal
The Liberal Democrats have urged the UK financial services regulator to examine Nigel Farage’s role in promoting a £2 million cryptocurrency purchase by the British Bitcoin firm Stack. As a shareholder in the company, Farage participated in a promotional video highlighting the investment, sparking concerns about potential conflicts of interest.
A spokesperson for Farage clarified that the event was a “photo call,” stating the cryptocurrency purchase was made on behalf of Stack, not personally. He emphasized his £215,000 stake in the company, which grants him 6.3% ownership through Thorn In The Side Ltd. Labour, however, criticized the move as a strategy to “line his own pockets,” suggesting it prioritizes personal gain over public welfare.
The BBC has sought comments from Stack, which was co-founded by Paul Withers. Withers also owns Direct Bullion, a gold trading company that has paid Farage £226,200 for promotional work, as noted in the MPs register of interests. In the promotional video, Farage stood beside Kwasi Kwarteng, the former UK chancellor who briefly led the government during Liz Truss’s premiership.
Farage described himself as a long-standing advocate for Bitcoin, stating, “I have long been one of the UK’s few political advocates for Bitcoin, recognising the role digital currencies will play in the future of business and finance.” Liberal Democrats deputy leader Daisy Cooper argued that his actions might mirror the “Donald Trump playbook,” potentially exploiting high-risk schemes for personal benefit.
Cooper added, “The FCA must investigate whether Farage’s plans to cash in on crypto could potentially amount to market abuse and a conflict of interest. We cannot allow political leaders to treat the financial markets like a personal piggy bank to line their own pockets.” An FCA spokesperson confirmed they will review the letter and provide a direct response.
Farage’s party, Reform UK, has accepted Bitcoin donations since last May, with him claiming the organization has already received “a couple” of such contributions. Keir Starmer plans to ban cryptocurrency donations to political parties, citing foreign financial interference. Reform UK is currently the only Westminster party known to have accepted digital currency donations.
Reform UK’s website states it does not accept anonymous donations, requiring checks for amounts over £500. This aligns with UK rules that mandate parties verify donations exceeding £500 from permissible sources, including electoral register-listed individuals. Farage’s representative noted, “All parties need donations to run campaigns,” citing Labour’s union funding as an example.
“Nigel Farage is hyping up a former Tory chancellor who crashed the economy, in a bid to line his own pockets. Reform are more interested in themselves than in standing up for working people. While Labour is working to clear up the mess the Tories left, Nigel Farage is cosying up to the architect of Liz Truss’s catastrophic mini-budget. It tells you everything you need to know about whose side he’s on.” – Labour Party chair Anna Turley
Bitcoin, a form of digital money, operates without physical form and is traded via computer networks. The Lib Dems argue that Farage’s involvement raises questions about whether his actions constitute “attempted interference in the cryptocurrency market” or “attempted market abuse.”
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