UK Liberal Democrats ask FCA to probe Farage over $2.7M BTC video

The UK Liberal Democrats have asked the Financial Conduct Authority to investigate whether Nigel Farage breached market rules after Stack BTC disclosed a purchase of 37 BTC and released a promotional video featuring the Reform UK leader.

Daisy Cooper, the party’s deputy leader, sent a letter to the FCA asking the regulator to determine if Farage’s on-camera promotion while holding equity in the company could amount to market abuse or a conflict of interest. In the letter she wrote, “The FCA must investigate whether Farage’s plans to cash in on Crypto could potentially amount to market abuse and a conflict of interest,” and added, “we cannot allow political leaders to treat the financial markets like a personal piggy bank to potentially line their own pockets.”

Stack BTC said it bought 37 Bitcoin for about $2.7 million as part of its treasury strategy and published a video tied to that purchase that features Farage. In the video Farage states that “a Bitcoin treasury company cannot exist without holding Bitcoin.” Stack BTC did not respond to requests for comment.

Farage disclosed in March that he invested about $286,000 to acquire a 6.31% stake in Stack BTC through his media vehicle Thorn In The Side. The company is chaired by former chancellor Kwasi Kwarteng and its website lists holdings of more than 68 BTC bought at an average cost of about $72,400 per coin.

Cooper’s letter also noted a £9 million donation to Reform UK from early crypto investor Christopher Harborne and Farage’s public advocacy for crypto-friendly policies. The letter asked whether those facts taken together could indicate that Farage was using his political platform in a way that might financially benefit himself, his party or close donors.

An FCA spokesperson provided a statement saying the regulator will “review the letter and respond directly.” The referral adds to parliamentary concern about crypto money in UK politics as lawmakers and regulators consider new rules on digital-asset donations.

Last month the independent Rycroft Review recommended a ban on crypto donations to political parties to reduce risks such as foreign financial interference in elections. The UK government has indicated it will impose a temporary ban on crypto donations until stronger safeguards are put in place, and some members of Parliament have urged a permanent prohibition.