Liberal Democrat deputy leader Daisy Cooper has formally requested that the Financial Conduct Authority (FCA) investigate Reform UK leader Nigel Farage regarding his involvement in cryptocurrency promotions.
In a letter to FCA CEO Nikhil Rathi, Cooper highlighted a promotional video for the treasury firm Stack BTC. The video claims Farage executed a £2 million ($2.7 million) bitcoin purchase on the firm's behalf, weeks after Farage personally invested £215,000 in the company.
Cooper alleges the sequence of events suggests potential market abuse and conflicts of interest. She also suggested Farage's crypto advocacy may follow a "Trump playbook," referencing reports of Donald Trump's significant earnings from crypto projects.
Allegations of political influence
The lawmaker raised concerns regarding the intersection of Farage's political platform and his financial interests. She noted that Reform UK received a £9 million ($12.2 million) donation from Christopher Harborne, a major Tether investor, late last year.
"The facts beg the question whether Mr Farag 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.
Beyond specific trades, Cooper pointed to Farage's broader policy stances. He has campaigned for a national "bitcoin reserve fund" and for HMRC to accept cryptocurrency for tax payments.
Cooper also criticized Farage for presenting crypto assets as highly attractive investments without disclosing risks. She cited a 2022 interview where Farage failed to challenge a guest's claim that bitcoin could reach "well over a million dollars plus long term."
Farage has recently described cryptocurrency as "the ultimate freedom." Cooper's letter argues these statements could encourage retail investors to enter the market without understanding the underlying volatility.
