Lib Dems call for inquiry into Farage Bitcoin deal
Lib Dems Seek Probe into Farage’s Bitcoin Transaction
The Liberal Democrats have urged the UK financial regulator to examine Nigel Farage’s role in promoting a £2m cryptocurrency investment. As leader of Reform UK, Farage is a shareholder in Stack, a British Bitcoin firm, and participated in a promotional video highlighting the company’s latest venture. The party’s inquiry focuses on whether his actions might constitute “attempted interference in the cryptocurrency market” or “attempted market abuse.”
Farage Clarifies His Involvement
A spokesperson for Farage stated the event was a “photo call,” emphasizing that he purchased the cryptocurrency on behalf of Stack, not personally. The leader has invested £215,000 in the company, securing 6.3% ownership through Thorn In The Side Ltd. This investment vehicle is central to his financial stake in the firm.
“Mr Farage is embracing the 21st century. He bought the [£2m of] crypto on behalf of Stack and not personally,” the spokesperson added.
Political Criticism and Market Concerns
Labour accused Farage of seeking to “line his own pockets” through his association with the venture. The party’s chair, Anna Turley, highlighted his alignment with Kwasi Kwarteng, the former Tory chancellor who oversaw Liz Truss’s brief premiership. “Nigel Farage is hyping up a former Tory chancellor who crashed the economy,” she said, “in a bid to benefit himself.”
Liberal Democrats deputy leader Daisy Cooper raised concerns about Farage’s tactics, likening them to “the Donald Trump playbook.” She warned that his actions could “lure people into high-risk schemes for his own gain,” stressing the need for the Financial Conduct Authority (FCA) to assess potential conflicts of interest. “We cannot allow political leaders to treat the financial markets like a personal piggy bank,” Cooper added.
Stack and Its Connections
Stack, the firm at the center of the controversy, was co-founded by Paul Withers, who also owns Direct Bullion. According to the MPs register of interests, Direct Bullion paid Farage £226,200 for promotional work. The company’s chair, Kwasi Kwarteng, appeared alongside Farage in the video announcing the £2m Bitcoin purchase.
Farage described himself as a “political advocate for Bitcoin,” citing its future role in finance. “I have long been one of the UK’s few political advocates for Bitcoin,” he said in a press release, adding that digital currencies will shape “the future of business and finance.”
Broader Implications for Political Funding
Keir Starmer, leader of the Labour Party, has proposed banning cryptocurrency donations to UK political parties. This move targets Reform UK, the only Westminster party known to have received such contributions. Last May, Farage announced his party would accept Bitcoin donations, and in October, he noted that “a couple” of crypto contributions had already been received.
Reform UK’s website states it does not accept anonymous donations and subjects any over £500 to verification. The FCA has confirmed it will review the matter and respond directly. “All parties need donations to run campaigns,” Farage’s team said, pointing to Labour’s acceptance of union funds as a parallel example.
