Farage quits as Clacton MP over crypto-linked gifts, forces by-election

Nigel Farage has resigned as the member of parliament for Clacton-on-Sea on Tuesday, saying that he will contest the by-election his own departure creates, a gamble that pauses two parliamentary standards inquiries into undeclared financial support from crypto backers.

The Reform UK leader announced the decision on his YouTube channel, casting the coming contest as a fight with his opponents.

“This will be a people versus the establishment by-election,” he said, adding that “the people of Clacton should be the judges of my actions.”

He denied breaking any rule, saying, “I have done nothing wrong. I have not broken the law in any way at all.” Farage told reporters that he had followed parliamentary rules on good legal advice.

Are the two inquiries on Farage tied to crypto money?

Farage was already being examined by the Parliamentary Commissioner for Standards over a personal gift of £5 million ($6.7 million) that he received from billionaire Christopher Harborne before the July 2024 election, but did not register.

Harborne, who is currently based in Thailand, holds an estimated 12% stake in Bitfinex and is an early backer of Tether, the company behind the USDT stablecoin. Farage says that the money was for personal security and qualified as a personal gift, which is a category MPs are not required to declare.

On Tuesday, July 7, he confirmed a second inquiry is now open, and this one concerns George Cottrell, a longtime friend who is a convicted fraudster with ties to crypto gambling.

Cottrell reportedly covered Farage’s private security, drivers, social media staff, and accommodation in the 12 months before his election, benefits that Commons rules require new MPs to register when they exceed £300 and relate to political activity.

Farage only declared a £9,253 trip to Belgium and a £15,276 flight as funded by Cottrell, and nothing else.

Cottrell, 32, served eight months in a US prison after pleading guilty to wire fraud following a 2016 arrest at Chicago’s O’Hare airport, where he was traveling with Farage. He has also been linked to Tether.bet, an offshore bookmaker that accepts wagers in cash and in Tether’s USDT.

A spokesperson for Farage called that reporting “baseless and contrived,” stating that the support predated his time as an active politician.

A leader who has bet on Bitcoin

In March, Farage took a 6.31% stake in Stack BTC Plc, a UK-listed Bitcoin treasury firm, buying around £2 million in shares through his investment vehicle Thorn In The Side Ltd. That purchase made him the first sitting UK party leader to publicly buy Bitcoin.

His party, Reform, has since published a draft bill to deregulate crypto and cut taxes on digital asset transactions, and Farage has floated a Bank of England Bitcoin reserve and a capital gains tax cut on crypto.

Liberal Democrat deputy leader Daisy Cooper asked the Financial Conduct Authority (FCA) in April to examine whether Farage’s promotion of digital assets amounts to market abuse.

Future funds from his donors are also about to take a hit as the government recently confirmed that it will close a loophole that lets people sidestep the cap on foreign political donations by moving to the UK.

Harborne and BitMEX co-founder Ben Delo, two of Reform’s largest funders, are reportedly relocating to Britain following the announcement of the cap. However, returning donors will be held to a £100,000 limit for a year after they arrive, a rule that could hit.

Reform raised £9.3 million in the first quarter of 2026, more than Labor and the Conservatives combined, with Harborne and Delo supplying most of it.

Farage’s resignation likely freezes both standards inquiries; however, they could resume after the by-election if regulators judge it proportionate.

Liberal Democrat leader Ed Davey said Farage should pay for the Clacton contest himself and not spend public money, calling the resignation a “stunt.”

Rupert Lowe, the former Reform MP now leading the rival Restore Britain party, said Farage “should have declared that five million pounds.”

Farage won Clacton in 2024 with a majority of 8,400, on his ninth attempt at a Westminster seat after seven earlier defeats. He could face tactical voting from an alliance of progressive parties and a challenge from Restore Britain.