Lib Dems call for inquiry into Farage Bitcoin deal

Lib Dems Urge FCA to Probe Farage’s Crypto Deal

The Liberal Democrats are pressing the UK financial watchdog to examine Nigel Farage’s participation in a £2 million cryptocurrency transaction. As a shareholder in Stack, a British Bitcoin firm, Farage featured in a promotional clip celebrating the company’s recent investment. The inquiry centers on whether his actions might constitute “attempted interference in the cryptocurrency market” or “market abuse,” according to the party’s demands.

A spokesperson for Farage characterized the event as a “photo call,” emphasizing that he acted on behalf of Stack rather than personally. The leader of Reform UK has invested £215,000 in the company and holds 6.3% of its shares via Thorn In The Side Ltd. Labour, meanwhile, has accused him of leveraging the venture to “line his own pockets,” suggesting a self-serving motive.

“Mr Farage is embracing the 21st century. He bought the [£2m of] crypto on behalf of Stack and not personally,” the spokesman added.

Farage’s involvement in the deal comes amid his advocacy for cryptocurrencies, which he has championed as a cornerstone of future finance. In a press release, he stated: “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.”

Liberal Democrats deputy leader Daisy Cooper highlighted concerns that Farage might be adopting the tactics of Donald Trump to prioritize personal gain. “This raises real concerns that Nigel Farage could be using the Donald Trump playbook to put his own financial interests above the public good, potentially luring people into high-risk schemes for his own gain,” she said.

Cooper argued that political leaders should not exploit financial markets for personal benefit, stating: “We cannot allow political leaders to treat the financial markets like a personal piggy bank to line their own pockets.” The FCA has confirmed it will review the matter and respond directly.

Stack, co-founded by Paul Withers, is also linked to Direct Bullion, where Farage serves as a brand ambassador. The gold trading company has paid him £226,200 for promotional work, as noted in the MPs register of interests. Labour’s Anna Turley criticized the move, linking it to Farage’s association with Kwasi Kwarteng, the former Tory chancellor who oversaw Liz Truss’s short-lived premiership.

“Nigel Farage is hyping up a former Tory chancellor who crashed the economy, in a bid to line his own pockets,” Turley remarked. “Reform are more interested in themselves than in standing up for working people.”

Farage’s crypto dealings are part of a broader strategy for Reform UK, which has announced its acceptance of Bitcoin donations. Last May, he declared the party would accept crypto contributions, and in October, he claimed a few such donations had already been received. The party’s website states it does not accept anonymous contributions and requires scrutiny for amounts over £500.

Keir Starmer, Labour’s leader, has pledged to ban cryptocurrency donations to UK political parties, citing a review on foreign financial influence. This measure is especially pertinent to Reform UK, the sole Westminster party known to have accepted digital currency donations. In the UK, political parties must verify that contributions exceeding £500 come from approved sources, such as registered voters.

A Farage representative told the BBC that “all parties need donations to run campaigns,” adding that Labour’s reliance on trade union funds is just one example of this practice.