Lib Dems call for inquiry into Farage Bitcoin deal

Lib Dems call for inquiry into Farage Bitcoin deal

The Liberal Democrats have demanded an inquiry from the UK financial regulator regarding Nigel Farage’s role in a £2 million cryptocurrency deal. As a shareholder in Stack, a British Bitcoin company, Farage was featured in a promotional video highlighting the firm’s latest investment. The party is questioning whether his actions might constitute “intervening in the cryptocurrency market” or “market manipulation.”

“Mr Farage is embracing the digital age. He purchased the crypto on behalf of Stack and not personally,” said a spokesperson for the leader.

Farage has invested £215,000 in the company, giving him a 6.3% stake via his investment vehicle, Thorn In The Side Ltd. Labour criticized the venture as a “bid to line his own pockets,” while the BBC sought comments from Stack. Cryptocurrencies, like Bitcoin, are digital assets traded through computer networks and lack physical form.

Farage’s connection to former Tory chancellor

In the promotional clip announcing Stack’s £2m Bitcoin purchase, Farage appeared with Kwasi Kwarteng, who previously served as UK chancellor for 38 days under Liz Truss. “I have long been one of the UK’s few political advocates for Bitcoin,” Farage stated in a press release, emphasizing digital currencies’ role in future finance.

“This raises concerns that Farage could be using the Trump playbook to prioritize his financial interests over public welfare,” remarked Daisy Cooper, Liberal Democrats’ deputy leader. “He might be enticing individuals into risky investments for personal gain.”

Cooper added that the FCA should assess if Farage’s actions risk “conflicts of interest” or “market abuse.” The FCA confirmed it will “review the letter and respond directly.” Stack was co-founded by Paul Withers, also the owner of Direct Bullion, for which Farage acts as a brand ambassador. The company has paid him £226,200 in promotional fees, per the MPs’ register of interests.

Political donations and Reform UK’s stance

Labour accused Farage of aligning with a former Tory chancellor linked to the economy’s recent turmoil. “Farage is cozying up to the architect of Liz Truss’s disastrous mini-budget,” said Anna Turley, Labour Party chair. Keir Starmer has proposed banning cryptocurrency donations to political parties, a measure relevant to Reform UK, which is the sole Westminster party accepting such contributions.

Last May, Farage declared Reform UK would accept Bitcoin donations. By October, he confirmed the party had received “a couple” of crypto funds. Reform UK’s website states it does not allow anonymous donations, requiring verification for amounts over £500. In the UK, all political parties must confirm donors are registered voters.

A Farage spokesperson noted, “All parties need donations to run campaigns,” citing Labour’s acceptance of trade union funds as an example. The BBC has reached out to Stack for further clarification on the matter.

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