Exclusive: Gift from Cryptocurrency Tycoon Reported to National Crime Agency
The £5 million gift to Nigel Farage by a cryptocurrency billionaire was reported to the National Crime Agency (NCA) by bankers who expressed concerns that the funds may have been laundered, can reveal.
This disclosure increases pressure on the Reform UK leader, who is currently awaiting a decision by the parliamentary standards commissioner on whether his failure to declare the money breached parliamentary rules.
Farage was given a deadline of 1pm on Tuesday to respond to about this article. He delivered a video address at 2pm from his parliamentary seat in Clacton-on-Sea.
However, this effort to deflect the escalating scandal surrounding his finances appeared to backfire on Tuesday night as the Conservatives, Labour, Restore Britain, and the Liberal Democrats all announced they would not field candidates in a by-election described as a “media circus” and “vanity project.”
If Farage is re-elected, he is still expected to face the parliamentary investigation and any potential reprimand that might result.
Background of the Gift and Farage’s Changing Explanations
’s initial report revealed the gift was made by Reform UK donor Christopher Harborne.
Since the revelation, Farage has provided varying explanations regarding the purpose of the money, maintaining that he had no obligation to disclose it because he was not a politician at the time. He also insisted the gift did not influence his decision to stand in the 2024 general election.
However, the latest investigation raises further questions about the timing and nature of the gift.
According to sources within the financial industry, Farage received at least part of the £5 million after announcing on 23 May 2024 that he would not stand for parliament, stating it was “not the right time for me.” The remainder of the £5 million was received after he had ruled himself out and shortly before he announced his candidacy.
The disclosure of the £5 million gift has precipitated the most significant crisis of Farage’s political career.
Correspondence and Legal Responses
In correspondence with , Harborne’s lawyers claimed Farage received the money on 5 April 2024. They did not provide substantive responses to detailed questions about the gift or the suspicious activity report (SAR) filed with the NCA. Instead, they requested copies of any documents held by .
In one letter sent to , Farage stated he was unaware of the SAR and added:
“I have no reason to doubt the ultimate source of the money.”
He also repeated unsubstantiated allegations that the information had been “illegally obtained” by the newspaper.
Farage has asserted he was not involved in politics at the time and therefore had no obligation to disclose the gift. However, on 1 May 2024, he became a “person of significant control” for Reform UK’s corporate entity, effectively owning and controlling the party. He was also honorary president of the party from March 2021 until June 2024.
Farage did not notify parliamentary authorities about the gift, but the transaction attracted the attention of bankers who were unable to satisfactorily trace the ultimate origin of the funds.
Banks pay particular attention to transactions involving “politically exposed persons” (PEPs) due to the increased risk of bribery, corruption, or other criminal activity.
Harborne’s involvement with cryptocurrencies also increases banking risk, as wealth transferred in and out of cryptocurrencies is more difficult to track.
In this case, understands that bankers filed a suspicious activity report (SAR) with the NCA on 16 May 2024 concerning the gift. An SAR does not constitute proof of wrongdoing; rather, it invites the agency to examine the transaction and determine whether further investigation is warranted. It is distinct from a crime report.
By mid-May, Farage had not received the full £5 million, according to sources, and transfers were still incomplete by 22 May, when he publicly ruled out standing for parliament.
Conflicting Timelines and New Book Revelations
Farage’s announcement appears inconsistent with details outlined in the new book The Farage Factor by Michael Ashcroft, which states plans were already underway by mid-May to launch his candidacy.
The book notes:
“By mid-May Reform had recruited Aaron Lobo, a GB News producer, to help promote an event at which Farage was going to announce his candidacy.”
It adds that the Hippodrome in Leicester Square, London, was “under consideration” as a venue for the event.
Farage has consistently maintained the money was an “unconditional gift” and that he had no reason to declare it to parliamentary authorities. However, the timing of the transfers is likely to prompt further scrutiny regarding his decision to stand for parliament and whether the gift influenced that decision.
Farage’s Varied Explanations and Responses to the SAR
When questioned about the gift, Farage has offered multiple explanations for its intended use. Initially, he said the money was to cover his security expenses. Later, he described it as a reward for campaigning for Brexit. In exchanges with reporters, he has stated it was “nobody’s business” how he used the money, and that he was under no obligation to disclose it.
Regarding the SAR, Farage reiterated his claim that the information about the £5 million was obtained illegally. He stated he was unaware of any “discussions” with the NCA about transactions involving him.
In a letter to , he said:
“I have no reason to doubt the ultimate source of the money.”
Lawyers representing Harborne did not respond to requests for comment or detailed questions.
Statements from Christopher Harborne and the NCA
In April, Harborne told The Telegraph that the money was “to support Nigel’s security not just now, but for the rest of his life.” He added that at the time he made the gift, “I never thought he would go back into politics.”
A spokesperson for the NCA said:
“The NCA does not confirm or deny the receipt of SARs, nor comment on how any SAR is used. SARs are confidential and breaching that confidentiality risks committing a tipping off offence under the Proceeds of Crime Act.”
The NCA receives several hundred thousand SARs annually. The relatively small team responsible for handling these reports has previously struggled to keep pace with submissions and to flag those warranting deeper investigation.
understands that the NCA has doubled the size of the team handling SARs in recent years, upgraded IT systems used to store and share reports with law enforcement agencies, and introduced new guidelines aimed at improving report quality.
Farage has said he had no obligation to disclose the £5m gift. Photograph: Ryan Jenkinson/
