Invest1 publisher3 min readPublished
Crypto entrepreneurs prepay 72 million pounds to Reform UK ahead of a possible donation cap
Ben Delo and Christopher Harborne each gave Nigel Farage's party 36 million pounds in a weekend, more than every UK party raised in donations all last year, and Delo's monthly pledge was handed over up front.
The Investor · Invest desk
What happened
- Ben Delo, co-founder of the crypto exchange BitMEX, gave Nigel Farage's Reform UK 36 million pounds on Friday, described as the largest individual donation in British political history.
- Christopher Harborne, a Tether investor based in Thailand, matched the sum with an equal donation the following day.
- Delo's money is pledged as 1 million pounds a month until August 2029, the latest date on which the next general election can be held.
- Reform said the funds will employ "the brightest and best minds" on policy-making and pay for 400 campaign managers.
Compiled by The InvestorSomething wrong?How this is made
Why it matters
- constraint The money is already in the party's hands, so a size cap legislated later would have to apply to sums already received, moving the fight from how much a donor may give to whether Parliament will write retroactive rules.
- decision Ministers now choose between limiting amounts and tightening who counts as a permissible donor; the 100,000 pound register test already reaches residency, while a headline cap speaks only to size.
- exposure Reform's spending power through the cycle rests on two individuals, one resident in Thailand and one saying he will move back from Hong Kong, at the same time as the party's donor vetting is under police examination.
- precedent Prepaying a multi-year pledge while the government is still consulting on limits is a template any large donor can copy ahead of any new rule.
The cash arrived up front. Delo's money was pledged as 1 million pounds a month, and 36 million pounds at that rate is 36 payments [1][5][3]. Cryptopolitan.com, citing the Associated Press, reports it was prepaid in case the government restricts big donations [6]. Ministers are weighing exactly those restrictions [21].
A cap on donations, if Parliament writes one, would have to apply to money already received to reach this 72 million pounds [1].
The size is easier to judge against the sector than against the party. All UK political parties together collected 64.8 million pounds in donations last year, on Electoral Commission figures [7], so two men in 48 hours beat the national total by about 7.2 million pounds [2].
A UK-based donor may give a party any amount [9]. The test that bites is who qualifies: since March, anyone giving more than 100,000 pounds a year must have been on the electoral register for 12 months [11], and 36 million pounds is 360 times that threshold [7]. Labour has capped donations from British expats at 100,000 pounds and intends the same limit for newly returned citizens [12]. Delo was born in Sheffield and says he plans to return from Hong Kong [13]; Harborne is based in Thailand [2]. Cryptopolitan.com's account does not say whether either man is currently on the register.
Cryptocurrency donations to British parties have been banned since March, and neither of these payments was made in crypto [10]. The wealth came from BitMEX and from a Tether investment [1][2]; the donations themselves were in ordinary money.
"While people talk about the health of 'our democracy,' doing all they can to make sure it is a cartel, I just want a level playing field," Delo said [15]. Harborne said he acted under a "competitive spirit" and did not expect anything personal in return [4], and said he backs Reform because he believes its economic policy will attract the investment needed to grow the economy and pay for public services such as healthcare and education [22]. The Liberal Democrats have called on the prime minister to limit donations [18]. "Farage wants to bring Trump's America to our shores by buying his way into power," their spokeswoman Lisa Smart said [16].
Across the 400 campaign manager posts Reform says it will fill, 72 million pounds is 180,000 pounds each, before a single policy hire [14][8]. Delo's 36 million is four and a half times the 8 million he had given the party before [8][4]. Counting Harborne's 15 million since the last election [3], the two men have now committed about 95 million pounds to Reform [6].
I think the constraint that reaches this money is permissibility. The Metropolitan Police began investigating Reform on Wednesday over donations from foreign donors, which UK law prohibits [19], after Channel 4 News broadcast undercover footage on Tuesday from the party's annual conference in which senior officials discussed how to mask foreign money [20]. A cap on future gifts does not touch sums already banked; a question about whether a donor was permissible attaches to the payments themselves. Two ways I could be wrong: Parliament writes a cap that applies retroactively, or the inquiry closes without touching either payment.
What to watch
- Whether any donation cap ministers draft applies to money already received, or only to future gifts.
- Whether the Metropolitan Police inquiry into foreign donations touches either of the two 36 million pound payments.
- Whether Delo's move back from Hong Kong satisfies the 12-month electoral register test for donations above 100,000 pounds.