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 watchdog to examine Nigel Farage’s involvement in a £2 million cryptocurrency transaction. As Reform UK’s leader, Farage is a stakeholder in British Bitcoin company Stack and featured in a promotional clip highlighting the firm’s latest investment. The party argues his actions may represent “attempted interference in the cryptocurrency market” or “attempted market abuse.”
“This event was a photo call,” said a spokesperson for Farage, explaining that the leader supported Stack’s crypto purchase on behalf of the company, not individually. “Farage is embracing the 21st century by investing in digital currencies,” the statement added.
Farage personally contributed £215,000 to Stack, holding 6.3% of its shares through his investment firm, Thorn In The Side Ltd. Labour criticized the venture as “a bid to line his own pockets,” emphasizing the political leader’s potential self-interest. The BBC sought comment from Stack on the matter.
Cryptocurrencies like Bitcoin operate as digital money without physical form, traded across computer networks. In a video announcing Stack’s £2m Bitcoin investment, Farage appeared with the company’s chair, Kwasi Kwarteng, who briefly served as UK chancellor during Liz Truss’s premiership. “I’ve long been a political advocate for Bitcoin,” Farage stated in a press release, noting its future role in finance.
Political Concerns
Liberal Democrats deputy leader Daisy Cooper warned that Farage’s actions could mirror Donald Trump’s strategies, prioritizing personal financial gain over public benefit. “The FCA must determine if this amounts to market abuse or a conflict of interest,” she said, arguing that leaders shouldn’t treat financial markets as a personal resource.
“Political figures should not use markets like a personal piggy bank,” Cooper added, critiquing Farage’s potential alignment with Kwarteng, who oversaw a controversial economic policy.
An FCA spokesperson stated they would review the case and provide a direct response. Stack was co-founded by Paul Withers, who also owns Direct Bullion, for which Farage acts as a brand ambassador. The gold trading company has paid him £226,200 for promotional work, per the MPs register of interests.
Labour’s Criticism
Labour Party chair Anna Turley accused Farage of leveraging a former Tory chancellor linked to economic instability. “Reform UK focuses more on itself than on supporting working people,” she remarked, pointing out the party’s connection to Kwarteng’s policies. Turley suggested Farage’s actions reveal his political allegiance.
Keir Starmer has proposed banning crypto donations to political parties, responding to concerns about foreign influence. The policy is especially relevant to Reform UK, which is the sole Westminster party accepting Bitcoin contributions. Last May, Farage announced his party would allow crypto donations, and earlier this year, he confirmed a few had already been received.
Reform UK’s website states it does not accept anonymous donations, requiring checks for amounts over £500. In the UK, political parties must verify that donations above this threshold come from eligible sources, such as registered voters. A Farage representative noted that “all parties need donations to run campaigns,” citing Labour’s union funding as an example.
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