Lib Dems call for inquiry into Farage Bitcoin deal

The Liberal Democrats have urged the UK’s financial regulator to examine Nigel Farage’s advocacy for a £2m cryptocurrency investment. As leader of Reform UK, Farage is a stakeholder in British Bitcoin firm Stack and featured in a promotional clip celebrating its latest funding round. The party is seeking clarification on whether his actions constitute “unlawful influence in the crypto market” or “market manipulation.”

A spokesperson for Farage dismissed the claims, calling the event a “photo call” and asserting:

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

The individual owns 6.3% of Stack through his investment vehicle, Thorn In The Side Ltd, having contributed £215,000.

Labour criticized Farage’s involvement, labeling it “a strategy to enrich himself.” The party’s chair, Anna Turley, remarked:

“Nigel Farage is promoting a former Tory chancellor linked to economic turmoil, all to benefit his own interests. Reform UK prioritizes self-gain over supporting working-class people.”

This accusation highlights concerns about his alignment with Liz Truss’s former finance minister, Kwasi Kwarteng.

Stack, co-founded by Paul Withers, also owns Direct Bullion, for which Farage serves as a brand ambassador. The company paid him £226,200 for promotional services, according to the MPs’ interests register. In the promotional video, Farage appeared alongside Kwarteng, who briefly held the UK chancellorship during Truss’s tenure.

The Financial Conduct Authority (FCA) has committed to reviewing the situation, stating:

“We will assess the letter and respond directly.”

Liberal Democrats deputy leader Daisy Cooper argued that Farage’s actions could mirror Donald Trump’s tactics, using political influence to serve personal financial gains. She emphasized:

“The FCA must determine if Farage’s crypto plans risk market abuse or conflicts of interest. Political leaders shouldn’t exploit markets as private accounts.”

Keir Starmer has proposed banning crypto donations to UK political parties, addressing concerns over foreign financial influence. This measure directly impacts Reform UK, the sole Westminster party known to accept Bitcoin contributions. Last May, Farage declared his party would accept crypto donations, and in October, he confirmed they had already received “a few” such payments.

Farage defended the practice, noting that all parties require funding. He cited Labour’s acceptance of trade union money as an example. The BBC has sought Stack’s response to the allegations, which remain under scrutiny.

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