The £5m gift to Nigel Farage by a cryptocurrency billionaire was reported to the National Crime Agency by bankers who were concerned it may have been laundered money, the Guardian can reveal. The disclosure came on the same day the Reform UK leader resigned as MP for Clacton, triggering a by-election he called a “people versus the establishment” contest. In a 20-minute video statement, Farage said he wanted to be “judged” by his constituents rather than the media, who he accused of a “pile-on”. But opposition parties—the Conservatives, Labour, Restore Britain and the Liberal Democrats—have all ruled out standing candidates, in an effective boycott. Prime Minister Sir Keir Starmer dismissed the move as a “desperate stunt”, while Conservative leader Kemi Badenoch likened it to a “hissy fit”. Liberal Democrat leader Sir Ed Davey urged all parties to “stand aside” rather than participate in “Farage’s vanity project”. The Green Party’s Zack Polanski also labelled it “a stunt”, though left the decision to local members. Rupert Lowe, leader of Restore, said the “people of Clacton do not need a media circus” but added his party would join a second by-election—potentially after the standards investigation concludes.
The resignation follows intense scrutiny over Farage’s financial arrangements. Since May, Parliament’s standards commissioner has been investigating why he did not declare a £5m gift from Christopher Harborne, a Thailand-based British cryptocurrency investor, received in April 2024 before his election. That probe will be suspended during the by-election but could be resumed if Farage is voted back in. Now opposition parties are calling for a further parliamentary probe after reports that Farage did not disclose support from George Cottrell, a convicted criminal and longtime friend who funded security and social media staff. Farage argues he was not obliged to declare any benefits under Commons rules and has done nothing wrong. In correspondence with the Guardian, he said he did not know about the suspicious activity report to the NCA, adding: “I have no reason to doubt the ultimate source of the money.”
“Nigel Farage resigns as MP to force by-election amid scandal over £5m gift reported to NCA.”
The by-election is likely to take place in August, with senior Reform sources pushing to start the process as soon as possible. If Farage is reelected, he still faces the parliamentary investigation and any possible reprimand. The Guardian first revealed in April that Farage had been given £5m by Harborne; since then, Farage has given differing explanations for the money. According to financial industry sources, at least some of the £5m was received after he announced on 23 May 2024 that he would not stand for parliament, and the balance shortly before he declared his candidacy for Clacton.