The UK’s Liberal Democrat party has called for an inquiry into Reform UK leader Nigel Farage’s £2 million ($2.7 million) bitcoin (BTC) purchase, suggesting that it could amount to “attempted interference in the cryptocurrency market.”
Farage’s BTC purchase, announced on Monday, was made on behalf of Stack BTC, a BTC holding venture run in conjunction with Conservative MP Kwasi Kwarteng.
The BBC reports that the Liberal Democrats have written a letter to the UK’s Financial Conduct Authority (FCA) calling for an inquiry into whether or not the purchase constitutes “attempted market abuse.”
Liberal Democrat Deputy Leader Daisy Cooper said, “We cannot allow political leaders to treat the financial markets like a personal piggy bank to line their own pockets.”
She added, “The FCA must investigate whether Farage’s plans to cash in on crypto could potentially amount to market abuse and a conflict of interest.”
The FCA told the BBC that it will review the letter and respond in due time.
Read more: Reform UK isn’t sharing crypto wallets with UK regulators, report
A spokesperson for Farage downplayed the purchase as a “photo call,” and said, “Mr Farage is embracing the 21st century. He bought the crypto on behalf of Stack and not personally.”
However, a previous and more sinister Reform promotion saw one of the party’s candidates, David White, paid to pretend in front of an audience in Thailand that he held an executive role at BuddyX, a Dubai-based crypto marketing scam.
White was marketed as the firm’s co-founder, and he claimed on stage to be the head of business for the UK and EU. He had lied, and Reform later said, “[BuddyX] paid for him to go present in Thailand… He had zero involvement in management, decision making, or any financials.”
Stack BTC was co-founded by Paul Withers, the owner of a gold bullion firm that paid Farage £226,200 ($307,000) to promote it.
Farage has invested £215,000 ($289,000) in buying 6.3% of Stack BTC’s shares.
Farage’s Stack BTC stake, however, reportedly comes with an added cash bonus for him if the firm manages to reach a market capitalisation of £100 million ($135 million).
The Times columnist Fraser Nelson described the BTC venture as a “scandal hiding in plain sight.”
He criticised the bonus deal saying, “Most politicians sell shares, to avoid the appearance of conflict of interest. Farage is buying shares, in order to personally profit.”
Stack BTC disputed Nelson’s claims, claiming that Farage has invested in shares on the same terms as everyone else. However, it failed to acknowledge the difference that his share deal comes with a reported bonus in the millions.
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It said, “To be crystal clear: Nigel got the exact same terms as everyone else that invested in the rounds that he invested in. All is in the public domain and declared correctly.”
Nelson responded, “No, Kwasi: your company gave Farage a sweetheart deal. A bonus he can exercise in just two years. Ordinary shareholders don’t have this.”
Farage is making crypto key to his image
The Stack BTC business is another example of Farage trying to appear anti-establishment while making a profit.
Reform’s acceptance of crypto donations was another way for it to portray itself as pushing back against the established order, while topping up its campaign coffers
However, it raised concerns about the potential for foreign government interference, and political crypto donations have been temporarily banned until legislation catches up.
New laws on foreign donors living abroad also mean that Reform’s largest donor, Tether shareholder Christopher Harbourne, won’t be able to keep up the scale of his donations, which have so far tallied to £22 million ($30 million). The new cap is £100,000 ($135,000).
Read more: Reform UK insider George Cottrell tied to Trump Polymarket bets worth millions
BitMEX founder Ben Delo, who pled guilty in 2022 to violating the Bank Secrecy Act after failing to implement adequate anti-money-laundering controls at his crypto exchange, announced he’ll move from Hong Kong to the UK so that he can continue to fund Reform.
Delo was pardoned by Donald Trump last year for his crimes.
He recently revealed that he’d given Reform £4 million before the caps came into effect. Delo manages a right-wing political stronghold within the UK that has connections to a variety of right-wing figures, from the Conservative Party to Restore Britain.
While Farage is attracting criticism for his BTC venture, Reform’s Deputy Leader Richard Tice is under fire for tax discrepancies.
The Times reported that he’s broken the law by failing to pay £91,000 in taxes on dividends. Further reports from the Tax Policy Associates now say he should’ve paid 120,000 in taxes.
Protos has reached out to Stack BTC and Reform for comment and will update this piece should we hear anything back.
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