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 role in promoting a £2 million cryptocurrency investment. The Reform UK leader is a stakeholder in the British Bitcoin firm Stack and featured in a promotional clip to highlight its recent funding round. The party is seeking clarity on whether his actions could constitute “attempted interference in the crypto market” or “market abuse.”

“Mr Farage is embracing the 21st century. He bought the [£2 million] crypto on behalf of Stack and not personally,” stated a spokesperson for the leader, downplaying concerns about personal gain.

Farage holds £215,000 in Stack and owns 6.3% of its shares via his investment vehicle, Thorn In The Side Ltd. Labour has criticized his involvement as “a bid to line his own pockets,” accusing Reform UK of prioritizing self-interest over public benefit.

The BBC has sought comments from Stack and the Financial Conduct Authority (FCA) to address the allegations. In a promotional video showcasing Stack’s £2 million Bitcoin purchase, Farage was seen alongside Kwasi Kwarteng, who briefly served as UK chancellor during Liz Truss’s tenure.

“I have long been one of the UK’s few political advocates for Bitcoin, recognizing its future role in business and finance,” Farage noted in a press release. Liberal Democrats deputy leader Daisy Cooper questioned whether his actions mirrored Donald Trump’s tactics, suggesting he might be “using the Trump playbook to prioritize personal interests.”

“The FCA must investigate whether Farage’s plans to cash in on crypto could amount to market abuse and a conflict of interest,” Cooper added. “We cannot allow political leaders to treat financial markets as a personal piggy bank.”

An FCA spokesperson confirmed the agency would “review the letter and respond directly.” Stack was co-founded by Paul Withers, also the owner of Direct Bullion, where Farage serves as a brand ambassador. The gold trading company has paid him £226,200 for promotional work, per the MPs register of interests.

Labour Party chair Anna Turley highlighted the irony of Farage “hyping up a former Tory chancellor who crashed the economy,” linking his support to Reform UK’s alignment with Liz Truss’s economic policies. Keir Starmer has proposed banning cryptocurrency donations to UK political parties, a move aimed at curbing foreign financial influence.

Reform UK is the sole Westminster party known to have accepted crypto donations, as revealed in a recent review. Last May, Farage announced his party would accept Bitcoin contributions, and in October, he claimed “a couple” of such donations had already been received. The party’s website states it does not accept anonymous contributions, with checks required for amounts exceeding £500.

Farage’s team argued that “all parties need donations to run campaigns” and cited Labour’s acceptance of union funds as a parallel example. This positions the issue within broader debates about transparency in political financing.