Farage faces scrutiny over crypto donor as by-election fight narrows

Nigel Farage and Reform UK are under mounting scrutiny after Al Jazeera reported that cryptocurrency billionaire Christopher Harborne gave Farage a personal gift worth 5 million pounds, or $6.7m, that had not been declared. The controversy matters because Farage is trying to regain his Clacton seat while criminal and parliamentary inquiries examine funding linked to his party.

Al Jazeera reported that the personal payment came before Farage became a member of parliament. It said the gift was separate from about 25 million pounds, or $33.6m, that Harborne gave directly to Reform UK.

Farage has resigned from Parliament and is campaigning again in Clacton, framing the vote as a contest between himself and “the establishment,” according to Al Jazeera. Other major UK parties have refused to field candidates against him, leaving the satirical candidate Count Binface as his main opponent in the race.

Investigations and political risk

Sam Power, a University of Bristol expert on political finance, electoral regulation and corruption, told Al Jazeera that Farage and Reform were in “a significant amount of trouble.” Power said the Harborne funding controversy damaged Reform in the Makerfield by-election, where its candidate lost to new Prime Minister Andy Burnham.

Power said Reform has a firm base of about 20 percent of the British vote, but argued that another 10 percent it needs to win a general election is weakening. He said voters can care about standards and ethics as well as issues such as healthcare and housing.

Al Jazeera reported that scrutiny has also focused on Farage’s association with George Cottrell, whom it described as a convicted fraudster, and on Farage’s ties to Tether, a stablecoin associated with Harborne. Tether has been linked by critics and investigators to drug cartels, fraud and human trafficking, allegations the company disputes.

Farage has denied being improperly influenced by Harborne, according to Al Jazeera. He has said the 5 million pounds was a gift and that he may spend it as he chooses, while that issue remains under parliamentary investigation.

Crypto and political influence

Farage has long supported cryptocurrency and opposed government regulation of the sector, Al Jazeera reported. The outlet said those positions align with some of his right-wing allies in US President Donald Trump’s administration, where several figures have close ties to the crypto industry.

Economist Frances Coppola told Al Jazeera that cryptocurrency emerged after the 2008 financial crisis as an attempt to separate payments and money from banks and central banks. She described its political roots as “anarcho-capitalism,” based on rejecting central banking and handing control over currencies to private companies.

Power said the lightly regulated world of crypto appeals to far-right and libertarian politicians. He told Al Jazeera that the relationship between technology figures, Harborne and Reform appears mutually beneficial, though the direction of influence is unclear.

Al Jazeera reported that Farage used a September meeting with Bank of England Governor Andrew Bailey to argue against the central bank’s plans for a digital currency. The Bank of England told Al Jazeera that it has not decided whether to proceed with a proposed digital pound.

Tether has said it works with authorities to fight illicit use of its currency, according to Al Jazeera. The United Nations Office on Drugs and Crime said in a 2024 report that Tether was the preferred option for crypto money launderers in Southeast Asia.

David Gerard, who writes about cryptocurrency, told Al Jazeera that crypto remains a currency used in fraud and cited trafficking-linked activity in Cambodia involving Tether. Lucy Harley-McKeown, cofounder of the technology blog Project Glitch, told Al Jazeera that voters should be concerned about politicians with close crypto ties and about who can influence democratic processes.

This story draws on original reporting from Al Jazeera.