The Liberal Democrats are demanding an inquiry into Nigel Farage’s promotion of a Bitcoin company.
The Reform UK leader promoted Stack BTC in a video alongside short-lived Tory Chancellor Kwasi Kwarteng, who is executive chairman of the Aquis-listed company.
Last month the MP for Clacton joined Blockchain.com in backing Stack BTC, while soon afterwards the firm raised around £2 million through a share placing, subscription and retail offer, with Farage investing a further £60,650 through the subscription – taking his total investment to £215,000 and holding to 6.3%.
The firm is raising capital to buy UK businesses and Bitcoin, while it has entered into a strategic partnership with Blockchain.com to deliver institutional-grade services.
Now the Lib Dems have called for the Financial Conduct Authority to investigate Farage’s promotion of the £2m deal in the video.
They say his actions may amount to “attempted interference in the cryptocurrency market” or “attempted market abuse”.
Labour, meanwhile, described the venture as “a bid to line his own pockets”.
A spokesman for Farage told the BBC the event was a “photo call”, adding: “Mr Farage is embracing the 21st Century. He bought the [£2m] crypto on behalf of Stack and not personally.”
Lib Dems deputy leader Daisy Cooper said: “This raises real concerns that Nigel Farage could be using the Donald Trump playbook to put his own financial interests above the public good, potentially luring people into high-risk schemes for his own gain.
“The FCA must investigate whether Farage’s plans to cash in on crypto could potentially amount to market abuse and a conflict of interest.
“We cannot allow political leaders to treat the financial markets like a personal piggy bank to line their own pockets.”
An FCA spokesperson said: “We will review the letter and respond directly.”
Kwarteng served as Chancellor for just 38 days before being sacked after his and former Prime Minister Liz Truss’s mini-Budget caused turmoil in the markets.
Stack BTC is backed by a ‘concert party’ of investors comprising Paul Withers, Daniel Howe, Kwarteng, Jai Patel, Brendan Kearns and Sam Daughtry, which collectively hold 45.21% of its share capital. Following admission of the new ordinary shares, its aggregate shareholding was reduced to 36.46%.
Stack said recently that its “business strategy aligns with Nigel Farage’s position as a champion of British business and long-time advocate of Bitcoin’s role in the future of finance”.
Earlier this year, Blockchain.com officially registered with the FCA to operate as a crypto asset business.
UK set for first EV battery recycling plant with £18.5m grant award