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 scrutinize Nigel Farage’s involvement in a £2 million cryptocurrency investment. As a shareholder in Stack, the British Bitcoin firm, Farage participated in a promotional video highlighting the company’s latest purchase. The party is concerned his actions may represent “potential market manipulation” or “possible market abuse.” A spokesperson for Farage dismissed the event as a “photo call,” stating: “Mr Farage is embracing the 21st century. He bought the [£2 million of] crypto on behalf of Stack and not personally.”

Farage’s personal stake in the company amounts to £215,000, granting him 6.3% ownership through his investment vehicle, Thorn In The Side Ltd. Labour has criticized his participation in the venture as “a bid to line his own pockets.” The BBC has sought comment from Stack on the matter. Bitcoin, a digital currency, operates without physical form and is traded across computer networks. In the video, Farage was featured with Stack’s chair, Kwasi Kwarteng, who previously served as UK chancellor during Liz Truss’s leadership.

“I have long been one of the UK’s few political advocates for Bitcoin, recognizing the role digital currencies will play in the future of business and finance,” Farage stated in a press release.

Daisy Cooper, Liberal Democrats deputy leader, expressed concerns that Farage might be adopting the strategies of Donald Trump to prioritize his financial interests over the public good. She argued: “The FCA must investigate whether Farage’s plans to cash in on crypto could potentially amount to market abuse and a conflict of interest. We cannot allow political leaders to treat the financial markets like a personal piggy bank to line their own pockets.”

“Nigel Farage is hyping up a former Tory chancellor who crashed the economy, in a bid to line his own pockets,” said Labour Party chair Anna Turley. “Reform are more interested in themselves than in standing up for working people. While Labour is working to clear up the mess the Tories left, Nigel Farage is cosying up to the architect of Liz Truss’s catastrophic mini-budget. It tells you everything you need to know about whose side he’s on.”

An FCA spokesperson confirmed: “We will review the letter and respond directly.” Stack was co-founded by Paul Withers, who also owns Direct Bullion, for which Farage serves as a brand ambassador. According to the MPs register of interests, the gold trading company has paid him £226,200 for promotional work.

Keir Starmer has announced plans to ban cryptocurrency donations to UK political parties following a review of foreign financial interference. The recommendation is particularly relevant to Reform UK, which is the only party at Westminster known to have received crypto donations. Last May, Farage declared his party would accept Bitcoin donations. In October last year, he mentioned the party had already received a “couple” of such contributions.

Reform UK’s website states it does not accept anonymous donations, with any payments over £500 requiring verification. In the UK, political parties must ensure donations above £500 come from permissible sources, including individuals registered on the electoral roll. A Farage representative told the BBC: “All parties need donations to run campaigns. Labour taking money from the trade unions is just one example.”