UK Parliamentary Watchdog to Investigate Nigel Farage Over Undisclosed $6.8 Million Gift From Tether Stakeholder

Image Credit: Shutterstock

Nigel Farage, leader of Reform UK and a sitting member of Parliament, is facing a formal investigation by the UK parliamentary standards watchdog after failing to declare a 5 million-pound ($6.8 million) gift from Christopher Harborne, a Thailand-based crypto billionaire with a 12% stake in stablecoin issuer Tether, according to reports from the Guardian and other UK news services published Wednesday.

Farage Received Harborne’s Donation Weeks Before Declaring His 2024 Election Candidacy

Farage received the donation from Harborne in the weeks before announcing his candidacy in the 2024 general election and did not declare it upon being elected as MP for Clacton. Under parliamentary rules, newly elected MPs are required to register all financial interests received within the 12 months preceding their election. 

Parliamentary Commissioner for Standards Daniel Greenberg is set to investigate Farage under rule 5 of the code of conduct, which requires lawmakers to “fulfil conscientiously” requirements relating to the registration of interests, according to the Guardian. Farage does not currently appear on the commissioner’s published list of active investigations.

Reform UK Claims the Gift Was a Personal Donation Exempt From Disclosure Rules

Farage and Reform UK have contested the need for disclosure, arguing the funds were intended to cover his personal security expenses and therefore exempt from declaration requirements. Reform UK has characterized the gift as falling under an exemption for purely personal donations. 

Labour and other parties have disputed that position and referred the matter to the parliamentary commissioner last month. The Guardian reported that Harborne’s donation arrived before Farage had formally entered the race, a detail central to the competing interpretations of whether disclosure was required.

Farage Faces Possible Suspension If Found to Have Breached Parliamentary Code of Conduct

If the watchdog finds that Farage breached the code of conduct, he could face suspension from the House of Commons and potentially be required to contest his parliamentary seat again. A weekly YouGov poll of voting intentions cited in reporting on the investigation showed Reform UK leading with 28% of the vote, with Farage positioned as a frontrunner to become the next prime minister. 

Farage has been publicly supportive of the crypto industry. In April, BitMEX co-founder Ben Delo said in an op-ed for CoinDesk that he had donated 4 million pounds to Reform UK since the start of the year.

UK Government Imposed a Moratorium on Political Crypto Donations in March

The investigation arrives against a backdrop of tightening restrictions on crypto’s role in UK politics. The UK government imposed a moratorium on political donations made in cryptocurrency in March, citing a review that warned digital assets could be used to channel foreign money into British politics. The ban applies to donations of any size and is set to be written into the Representation of the People Bill, with criminal penalties attached for non-compliance.