The UK's Liberal Democrats have formally requested that the Financial Conduct Authority (FCA) investigate Nigel Farage, leader of the Reform UK party, over his cryptocurrency activities, alleging market abuse and conflicts of interest.
In a letter sent on April 13 to FCA CEO Nikhil Rathi, Liberal Democrat deputy leader Daisy Cooper highlighted a promotional video in which Farage claimed to have purchased $2 million worth of bitcoin through the crypto platform Stack BTC. However, public filings show that only weeks earlier, Farage had invested just £215,000 ($288,000) to acquire 4.3 million shares in Stack BTC, becoming a major shareholder in the company chaired by former Chancellor Kwasi Kwarteng.
Record-Breaking Crypto Donation Raises Red Flags
Cooper also pointed to a $12 million cryptocurrency donation to Reform UK from aviation and crypto investor Christopher Harborne, described as the largest such donation in UK history. This donation sparked a government ban on untraceable crypto contributions to political parties, enacted by Prime Minister Keir Starmer's administration to prevent bad actors from influencing elections.
“Taken together, these facts beg the question whether Mr Farage is promoting cryptocurrencies through his political platform in order to inflate crypto values for his own financial benefit, as well as that of his party and his inner circle of donors,” Cooper wrote. She added that Farage had previously admitted Reform UK's support for the crypto industry was a mutually beneficial trade.
FCA to Review Potential Market Abuse and Misleading Promotions
The Liberal Democrats argue that Farage's crypto dealings may mirror tactics used by US President Donald Trump during the 2024 election campaign. Cooper warned that Farage's position as a leading opposition figure could persuade his supporters to pour large sums into volatile crypto assets, exposing them to significant financial risk.
The FCA is expected to review whether Stack BTC's promotional activities misled consumers, particularly those lacking crypto expertise. The watchdog may also examine whether Farage's shareholdings and public endorsements violated market abuse regulations. The UK government's recent ban on crypto political donations followed months of parliamentary pressure, and the Liberal Democrats are urging the FCA to publish its findings if an investigation is opened.