Crypto

Cryptocurrency backed by Farage donor is used for Russian war effort, investigators say

Published

6 months ago

November 21, 2025

Cryptocurrency backed by Farage donor is used for Russian war effort, investigators say

A cryptocurrency backed by one of Nigel Farage’s biggest donors has been used to help Russia fight its war against Ukraine, British investigators say.

The National Crime Agency has spent four years trying to crack a multibillion-dollar scheme that exchanges cash from drug and gun sales in the UK for crypto, digital tokens that are designed to hide their users’ identities.

The scheme has enabled “sanctions evasions and the highest levels of organised crime, including providing money-laundering services to the Russian state”, the agency says.

Of the $24m (£18.3m) in crypto that the NCA and its counterparts abroad have so far been able to seize, the “vast majority” was issued by Tether.

A private company headquartered in El Salvador, Tether has grown so popular that it declared profits of $13bn for 2024, one-and-a-half times those of McDonald’s. Tether’s shares are reportedly owned by a small group, among them Christopher Harborne, one of the UK’s biggest political donors. Harborne took a 12% stake around 2016, court papers say, although it is unclear what share of Tether’s profits he has received.

Christopher Harborne, who is one of Britain’s biggest political donors, took a 12% stake in Tether around 2016. Photograph: George Cracknell Wright/LNP

In 2019-20, as the UK was leaving the EU, Harborne gave £10m to Nigel Farage’s Brexit party, since renamed Reform UK. In January, Farage accepted another £28,000 from Harborne to attend Donald Trump’s inauguration as president – the month after the US placed sanctions on the Russian bosses of the laundering networks and publicly warned they were using Tether.

Reform UK, the first British political party to accept donations in crypto, did not respond to a request for comment. Harborne’s lawyers said that accusing an investor in Tether of complicity in crimes perpetrated by users of its tokens would be “akin to claiming the US Treasury is an accomplice in money laundering because it prints the US dollar”.

While there is no suggestion that Harborne himself is implicated in the money-laundering scheme, some of his fortune appears to have come from a company whose cryptocurrency is in high demand from illicit networks such as the Russian ones unearthed by the NCA’s Operation Destabilise.

Unlike volatile cryptocurrencies such as bitcoin, Tether’s tokens are stablecoins, whose value is pegged to the dollar, making them easier to exchange for real currencies. Buyers of newly minted Tether stablecoins – called USDT – pay one dollar for each. Tether holds this cash to maintain the stablecoin’s peg, and makes money from the interest or investment return on it. About 184bn USDT are in circulation.

A Tether representative said the company “unequivocally condemns the illegal use of stablecoins and is fully committed to combating illicit activity”.

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“Tether tokens are often acquired and circulated through secondary markets and peer-to-peer platforms. These flows are not controlled by Tether but we remain vigilant and ready to act when law enforcement identifies illicit activity,” the spokesperson added.

But crypto experts say all demand – including illicit demand – benefits the company by driving up the cash reserves from which Tether makes its billions in profit.

Harborne, a former McKinsey consultant, is not an executive at Tether. He also has interests in aviation fuel, military contractors and a wellness centre in Thailand, where he lives, going by British and Thai names. He describes himself as an “intensely private person”.

As well as helping Farage and his parties, Harborne has given money to the Conservatives and donated £1m to Boris Johnson when he left Downing Street in 2022. The Guardian revealed that after the donation Harborne accompanied Johnson on a visit to Ukraine. Neither has said why.

Johnson did not respond to a request for comment. A Tory spokesperson said: “All donations to the Conservative party are accepted in good faith and only after thorough due diligence to ensure they come from permissible sources. We take our legal and compliance responsibilities extremely seriously.”

NCA investigators say cryptocurrency has “turbocharged” money laundering, with the Russian laundering scheme switching to Tether shortly before 2020.

Sal Melki, the NCA’s deputy director of economic crime, said: “A line can be drawn from this money-laundering scheme to support for companies involved in the Russian military-industrial base.”

The NCA launched Operation Destabilise in 2021 when it rumbled a ransomware gang whose proceeds were being laundered by a Russian socialite. Working with their US, French and Irish counterparts, investigators established that the laundering network, known as Smart, and another, called TGR, were shifting billions of pounds.

The NCA’s investigators believe the TGR network has “supported companies involved in the Russian military-industrial base”. It has, they say, “facilitated the export of electronic components to Russia”.

Western countries have imposed sanctions seeking to restrict the Putin regime’s access to computer chips and other hard-to-find components for drones and missiles, yet the weapons continue to rain down on Ukraine. Ukraine’s president, Volodymyr Zelenskyy, said in October that the weapons systems Russia used in a single day of deadly air attacks contained more than 100,000 foreign-made parts, including British microcomputers.

NCA investigators say Russian intelligence agents tried to fund a spy ring of six Bulgarians it was running in the UK via the Smart laundering network. The espionage included hunting an investigative journalist who had helped implicate Russian spies in the poisoning of the opposition politician Alexei Navalny. The Bulgarians were jailed in May after an Old Bailey trial.

The networks have also helped rich Russians in the west access cash – as much as £100,000 a time – to maintain the lifestyles to which they are accustomed despite sanctions, the investigators say.

The NCA has little hold over Tether, a spectacularly profitable venture in a largely unregulated industry based in a Central American dictatorship.

Melki said: “We work with any global crypto firm that wants to work with us, in addition to those regulated in the UK, but there’s no free pass for crypto firms. They all have a role to play in limiting their exposure to bad actors.”

The Tether representative said it had “a proven track record as the industry leader in working with global law enforcement to stop bad actors”.

The company has frozen or blocked more than $3.4bn in USDT in collaboration with more than 300 agencies in 62 countries, the representative added.

Crypto

ADI Foundation and Settlemint Launch ADGM Tokenization Rail for $30.9B RWAs

Published

8 hours ago

May 14, 2026

Press Room

ADI Foundation and Settlemint Launch ADGM Tokenization Rail for .9B RWAs

Integrated Infrastructure for Institutional Adoption

ADI Foundation and Settlemint announced a partnership on May 13 to launch a new digital securities infrastructure on the ADI Chain, aiming to streamline the tokenization of assets within the Abu Dhabi Global Market (ADGM) regulatory framework.

The collaboration integrates ADI Foundation’s compliance-ready Layer-2 blockchain with Settlemint’s digital asset lifecycle platform (DALP). The combined system is designed to handle the entire lifespan of a digital security, from initial token creation and on-chain recording to post-trade servicing and management.

The move addresses a primary hurdle for institutional investors: the difficulty of coordinating issuance, trading, settlement, and custody across fragmented jurisdictions. By providing an integrated architecture, the partners aim to offer a unified pathway for institutions to move traditional assets onto the blockchain.

“The future of investment and trading will not only be digitized, but also available 24 hours a day, 7 days a week,” said Andrey Lazorenko, CEO of ADI Foundation. “Our partnership brings together market infrastructure, institutional-grade blockchain, and a digital asset lifecycle platform to tokenize equities and trade them on secondary platforms.”

According to a media statement, the platform utilizes Settlemint’s implementation of the ERC-3643 standard—a protocol specifically designed for security tokens to ensure compliance with regulatory requirements. While the partnership is initially focusing on equity tokenization, the infrastructure is built to support a variety of other tokenized securities and financial instruments, pending regulatory approval.

The announcement comes as institutional interest in real-world assets ( RWAs) on-chain continues to accelerate. According to data from RWA.xyz, tokenized RWAs currently represent approximately $30.92 billion in on-chain value, with tokenized U.S. Treasuries accounting for roughly $15.20 billion of that total. Market analysts expect this trend to scale significantly. A 2026 analysis by BCG suggests the digital asset market could surge from $0.6 trillion in 2025 to $18.9 trillion by 2033.

Matthew Van Niekerk, co-founder and president of Settlemint, characterized the partnership as a “blueprint” for the broader financial industry.

“This partnership proves that regulated, multi-asset tokenization at national scale on public blockchains is not just feasible, but live,” Van Niekerk said. He added that the infrastructure is intended to be a model that central securities depositories (CSDs), exchanges, and clearing houses can adopt to integrate digital assets into existing operations.

Crypto

BlackRock COO: Cryptocurrency Demand Surpasses Firm’s Expectations, Signaling a Shift in Value

Published

20 hours ago

May 13, 2026

Press Room

BlackRock COO: Cryptocurrency Demand Surpasses Firm’s Expectations, Signaling a Shift in Value

BlackRock Chief Operating Officer Rob Goldstein revealed that demand for cryptocurrency has significantly exceeded the firm’s initial projections, marking a notable shift in institutional sentiment toward digital assets. Speaking during a Binance online stream, Goldstein addressed the market’s reception of BlackRock’s spot Bitcoin exchange-traded fund (ETF), IBIT, and outlined the asset manager’s broader strategic outlook on blockchain-based finance.

Demand Driven by Value Proposition, Not Speculation

Goldstein emphasized that the global demand for IBIT was stronger than anticipated, describing the interest not as fleeting speculative enthusiasm but as a recognition of a new value proposition rooted in emerging technology. He noted that investors are increasingly viewing cryptocurrency as a distinct asset class with potential for long-term portfolio diversification, rather than a short-term trading vehicle. This perspective aligns with BlackRock’s broader push to integrate digital assets into traditional investment frameworks.

Tokenization and the Future of Capital Markets

Goldstein predicted that the tokenization of capital market instruments remains in its early stages, with future growth expected to be measured in multiples rather than incremental percentages. He argued that blockchain infrastructure could fundamentally reshape how assets are issued, traded, and settled, reducing friction and increasing transparency. This view is consistent with growing industry interest in real-world asset (RWA) tokenization, a trend that major financial institutions are beginning to explore.

AI Agents and Digital Rail Transactions

In a forward-looking comment, Goldstein suggested that artificial intelligence agents will eventually conduct transactions directly via digital rails, or blockchain infrastructure, rather than logging into traditional bank accounts. This vision points to a future where automated systems interact with decentralized finance protocols, potentially streamlining operations across supply chains, payments, and asset management. While still conceptual, the statement underscores BlackRock’s attention to the convergence of AI and blockchain technologies.

The Education Gap Remains a Key Obstacle

Goldstein identified the primary barrier to broader adoption as a lack of investor education regarding the technical aspects of virtual assets and efficient portfolio allocation. Many institutional and retail investors remain uncertain about how to evaluate cryptocurrencies, assess risks, and integrate them into existing investment strategies. BlackRock’s emphasis on education suggests that the firm sees informed participation as critical to sustainable market growth.

Conclusion

BlackRock’s acknowledgment that cryptocurrency demand has exceeded expectations carries significant weight, given the firm’s status as the world’s largest asset manager with over $10 trillion in assets under management. Goldstein’s comments reflect a maturing institutional perspective that views digital assets not as a passing trend but as a structural evolution in finance. For investors, the key takeaway is that major financial players are moving beyond skepticism and actively building infrastructure for a tokenized future, even as educational gaps persist.

FAQs

Q1: What did BlackRock’s COO say about cryptocurrency demand?
Rob Goldstein stated that demand for cryptocurrency, particularly through BlackRock’s IBIT Bitcoin ETF, has exceeded the firm’s expectations, driven by a recognition of its value as an emerging technology rather than mere speculation.

Q2: What is BlackRock’s view on tokenization?
Goldstein described tokenization of capital market tools as still in its infancy, with future growth expected to be exponential. He believes blockchain infrastructure will play a key role in transforming how assets are managed and traded.

Q3: What is the biggest obstacle to cryptocurrency adoption according to BlackRock?
The main challenge is a lack of investor education on the technical aspects of virtual assets and how to allocate them effectively within a portfolio, according to Goldstein.

Crypto

MEXC Commits to 1,000 BTC Purchase as Guardian Fund Targets $500M Expansion

Published

1 day ago

May 13, 2026

Press Room

MEXC Commits to 1,000 BTC Purchase as Guardian Fund Targets 0M Expansion

Key Takeaways

BTC and USDT to Serve as Dual Reserve System for Market Stability

Crypto exchange MEXC is deepening its focus on reserve strength and user protection, announcing plans to expand its Guardian Fund fivefold to $500 million and acquire 1,000 bitcoin as part of a broader risk management strategy.

The exchange said the initiative will be rolled out over the next two years and is designed to create a dual-reserve structure combining liquid stablecoin holdings with long-term BTC reserves. The framework is intended to bolster platform stability and improve resilience during periods of market stress.

The announcement comes as MEXC continues to attract new capital and users. According to data from Defillama, the exchange recorded $271.6 million in net inflows over the past month through May 11, reflecting increased trading activity and participation across global markets.

Under the revised structure, the Guardian Fund will continue to hold significant USDT reserves to ensure immediate liquidity and operational flexibility. The addition of bitcoin is intended to provide a longer-term store of value capable of preserving purchasing power across market cycles.

Transparency Remains Key for MEXC

MEXC said the strategy is part of a disciplined reserve management approach rather than a reaction to short-term volatility. The company framed the expansion as an effort to build infrastructure comparable to institutional-grade financial safeguards increasingly expected in the digital asset industry.

“Trust has to be capitalized, not just claimed. The expansion of the Guardian Fund and the addition of bitcoin reserves reflect our commitment to building protection infrastructure that helps users access infinite opportunities with greater confidence,” CEO Vugar Usi said in a statement.

The exchange also emphasized transparency. Wallet addresses tied to the Guardian Fund’s USDT and bitcoin holdings have been disclosed publicly, allowing users to verify reserve balances on-chain in real time. The move highlights a broader trend among large trading platforms seeking to differentiate themselves through stronger balance sheets and more visible proof-of-reserves mechanisms.

For MEXC, the Guardian Fund expansion forms part of a wider push to position itself as a global platform capable of supporting long-term growth. The company said the initiative aligns with its broader strategy of improving transparency, strengthening risk management, and protecting users during periods of heightened market uncertainty.