Defence Secretary Wes Streeting has stated that thorough due diligence was conducted on donations totaling £37,500 received by his office from the pressure group Labour for the Long Term (LLT) between 2022 and 2023. The scrutiny arises because LLT's founder, David Lawrence, reportedly accepted £500,000 from Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, shortly before LLT made its initial contribution to Streeting.
Bankman-Fried was sentenced to 25 years in prison in March 2024 by a U.S. court for defrauding customers and investors. Conservative opponents have called on Streeting to disclose the origins of his donations and any potential links to the convicted fraudster.
The contributions from LLT were in the form of 'donations in kind,' which funded the £2,500 monthly salary for a policy adviser, Dr. Thomas Gardiner, who was seconded to Streeting's team for two days a week. Streeting was serving as Labour's shadow health secretary at the time these donations were made.
This situation comes as the Labour Party has been critical of both the Conservative Party and Reform UK regarding foreign-based donors. While foreign nationals are prohibited from making direct political donations in the UK, funds can legally be channeled through UK-based entities.
Records indicate that LLT registered its website on June 20, 2022. Court documents related to the Bankman-Fried fraud case show that Lawrence received the £500,000 gift from Bankman-Fried approximately ten days later. Lawrence has stated that he donated Bankman-Fried's funds to UK-based charities focused on disaster relief, animal welfare, and child poverty, and that these funds were not used to support LLT.
Lawrence has condemned Bankman-Fried's actions and stated he was unaware of any criminal activity at the time. He further clarified that LLT received donations from various UK-based donors, with all declarations made in compliance with Electoral Commission requirements. He asserted that LLT did not receive funds from the FTX Foundation or Bankman-Fried himself.
Lawrence had been named as the Labour candidate for Basingstoke in December 2022, a few months after LLT's first donation to Streeting's office. He withdrew from this candidacy the following year, citing personal reasons and stating that the emergence of the FTX scandal, coinciding with the birth of his child, created stressful circumstances leading to his decision.
Alex Burghart, Conservative shadow chancellor of the Duchy of Lancaster, commented that Streeting has serious questions to answer and must provide full transparency regarding the source of his donations and any possible connections to Bankman-Fried.
Sources close to Streeting indicated that Bankman-Fried was never mentioned in discussions between LLT and Streeting's team. It is understood that all donations were halted once the connection was made aware.
A spokesperson for Streeting affirmed that full due diligence was conducted before accepting the donations, including LLT providing a list of its funders, which did not include Bankman-Fried. This process was carried out in conjunction with the Labour Party, and at no point did the due diligence suggest the funds originated from undeclared sources. The spokesperson added that Streeting has had no direct contact with Bankman-Fried.
A Labour Party spokesperson confirmed that the party conducted due diligence checks on the donations prior to their receipt, and no issues were identified during that process. The party has recently criticized Reform leader Nigel Farage for accepting a £5 million donation from crypto-billionaire Christopher Harborne.