UK Reform Leader Nigel Farage Faces Parliamentary Investigation Over Crypto Donations

UK Reform leader Nigel Farage will face an investigation that had been briefly paused following his resignation from Parliament after winning a by-election on Thursday with no major party candidates participating.

As of Friday, the UK Parliamentary Commissioner for Standards website showed that Farage was currently under investigation for “failure to register an interest” related to the Reform leader receiving millions of dollars’ worth of donations and gifts from two figures tied to the crypto industry. The investigation was halted in July after Farage resigned as a member of Parliament, but resumed following his reelection as Clacton’s MP.

The commission will probe cryptocurrency billionaire Christopher Harborne giving Farage $6.7 million as well as the Reform leader’s staff and security funded by George Cottrell, a convicted fraudster tied to a crypto casino. Should the investigation determine that Farage violated parliamentary rules, he faces a possible suspension from parliament, which could trigger another by-election.

Under UK parliamentary rules, new members must register all current financial interests within a month of their election, as well as any benefits received in the 12 months prior. Farage initially called Cottrell’s donation a “reward” for campaigning for Brexit and later described both men’s contributions as “gifts” given “on an unconditional basis.”

The by-election triggered by Farage’s resignation in July saw the Reform leader winning with 63% of the vote, defeating satirical candidate Count Binface’s 27%. None of the other major parties participated in the race, which then-Labour leader and UK Prime Minister Keir Starmer called a “desperate stunt” by Farage. Andy Burnham has since become prime minister.

UK mulling permanent ban on crypto “gifts”?

Amid Farage’s political scandal, Labour lawmakers reportedly proposed that a moratorium on crypto donations implemented in March be made permanent as part of measures to address the potential influence of foreign actors.

According to the International Bar Association, unincorporated associations are allowed to give more than $675 directly to UK politicians, offering a loophole for companies with business in the country to be used as “conduits for foreign or dark money.”