Nigel Farage, leader of the UK's Reform party, will once again face an investigation that was suspended after he resigned from Parliament. On Thursday, he won a by-election in which no candidates from the major parties participated.
The website of the UK Parliament's Commissioner for Standards states that Farage is under investigation for "failure to declare a financial interest." It relates to the Reform leader receiving millions of dollars in donations and gifts from two crypto industry figures. The investigation was suspended in July after Farage gave up his parliamentary seat but has been resumed following his re-election as the MP for Clacton-on-Sea.
The Commission is investigating the circumstances under which crypto industry billionaire Christopher Harborne transferred $6.7 million to Farage, as well as the fact that the staff and security for the Reform leader were funded by George Cottrell, a convicted fraudster linked to a crypto casino.
According to UK parliamentary rules, new MPs must register all current financial interests within a month of election, as well as any benefits received over the previous 12 months. Initially, Farage called Cottrell's donation a "reward" for his Brexit campaign work, and later characterized both men's contributions as "gifts" provided "without any strings attached."
Related: Reform UK Chair Calls for Probe into SBF-Linked Donation: Report
If the investigation finds that Farage breached parliamentary rules, he could face suspension from Parliament. This could trigger another by-election. Cointelegraph contacted the Parliamentary Commissioner for Standards for comment but did not receive an immediate response.
Source: Nigel Farage
In the by-election triggered by Farage's July resignation, the Reform leader won with 63% of the vote, ahead of satirical candidate Count Binface, who received 27%. None of the other major parties participated in the election, which the then-leader of the Labour Party and UK Prime Minister Keir Starmer called a "desperate stunt" by Farage. Andy Burnham has since become Prime Minister.
UK Mulls Permanent Ban on Crypto "Gifts"?
Amid the political scandal surrounding Farage, Labour MPs have reportedly proposed making permanent a moratorium on cryptocurrency donations that was introduced in March, as part of measures to counter potential influence from foreign actors.
According to the International Bar Association, unincorporated associations are allowed to give more than $675 directly to UK politicians. This creates a loophole allowing companies operating in the country to act as "conduits for foreign or opaque funds."
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