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 financial regulator to examine Nigel Farage’s promotion of a £2m cryptocurrency investment. The Reform UK leader, who holds shares in the British Bitcoin firm Stack, was featured in a promotional video celebrating the company’s latest acquisition. The inquiry seeks to determine if his actions might constitute “attempted interference in the cryptocurrency market” or “attempted market abuse.”

A representative for Farage described the event as a “photo call,” asserting that the investment was made on behalf of Stack and not personally. He noted that he has invested £215,000 in the company, granting him a 6.3% stake via Thorn In The Side Ltd. Labour criticized the venture as “a bid to line his own pockets,” highlighting concerns over Farage’s alignment with the company.

“Nigel Farage could be using the Donald Trump playbook to prioritize his financial interests over the public good,” said Liberal Democrats deputy leader Daisy Cooper. “This might involve luring people into high-risk schemes for personal gain.”

Stack, co-founded by Paul Withers, also owns Direct Bullion, for which Farage serves as a brand ambassador. The gold trading company has paid him £226,200 for promotional work, per the MPs register of interests. Cooper added that the FCA must assess whether Farage’s crypto plans risk market abuse or conflict of interest, warning against political leaders treating financial markets as personal piggy banks.

An FCA spokesperson confirmed they would “review the letter and respond directly.” Meanwhile, Labour Party chair Anna Turley accused Farage of “hyping up a former Tory chancellor who crashed the economy,” suggesting his partnership with Kwasi Kwarteng, the UK’s short-serving chancellor during Liz Truss’s premiership, is self-serving.

Keir Starmer has proposed banning cryptocurrency donations to UK political parties as part of a broader review on foreign financial influence. This recommendation particularly applies to Reform UK, the only Westminster party known to accept crypto contributions. Last May, Farage announced his party would allow Bitcoin donations, and in October, he revealed it had already received “a couple” of such funds.

Reform UK’s website states it does not accept anonymous donations, requiring checks for any contributions over £500. A Farage spokesperson told the BBC that “all parties need donations to run campaigns,” citing Labour’s acceptance of trade union funds as an example.