Rishi Sunak is facing a fresh headache after a Conservative MP was suspended over allegations he misused campaign funds.
The Times newspaper report into Mark Menzies is the latest sleaze row to rock the Tories since the prime minister entered Downing Street with a promise to bring “integrity and accountability” to government.
Having sought to draw a line under the scandal-hit era of Boris Johnson, problems have continued to mount for Mr Sunak.
Sky News looks at the MPs who have been suspended during his time in office so far.
Mark Menzies
Fylde MP Mr Menzies lost the Conservative whip and was suspended as one of Rishi Sunak’s trade envoys after The Times published claims that he had used political donations to cover medical expenses and pay off “bad people” who had locked him in a flat and demanded thousands of pounds for his release.
Mr Menzies, who will now sit as an independent MP, disputes the allegations but “agreed to relinquish the Conservative whip, pending the outcome of an investigation”, Chief Whip Simon Hart said.
Image: Mark Menzies. Pic: AP
Mr Sunak is facing questions over how the claims were handled, with reports suggesting that the party had been aware of the allegations for more than three months.
Sky News understands there had been an ongoing investigation by Conservative Campaign Headquarters into Mr Menzies, but further information came to light following the newspaper’s report and Mr Hart acted immediately.
William Wragg
William Wragg, the MP for Hazel Grove in Greater Manchester, also gave up the whipafter he admitted to The Times he had given his colleagues’ phone numbers to someone he met on a dating app.
The senior backbencher apologised and said the person “had compromising things on me. They wouldn’t leave me alone”.
Image: William Wragg. Pic: PA/UK Parliament
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Wragg praised for dignity
Scotland Yard later said it is investigating reports of the so-called “honeytrap” scam after it was suggested at least 12 men in political circles received unsolicited messages, raising security concerns.
Mr Wragg’s decision to voluntarily give up the whip led to criticism from within Conservative ranks, with a senior Tory source telling Sky News: “Rishi is so weak Wragg decided he’d have to fire himself instead.”
Lee Anderson
Image: Lee Anderson has since defected to Reform UK. Pic: Reuters
Former deputy party chairman Lee Anderson had the whip suspended over “Islamophobic” comments he made about Sadiq Khan.
The MP for Ashfield, who has since defected to the Reform party, said he believed “Islamists” had “got control” ofthe Mayor of London, saying: “He’s actually given our capital city away to his mates.”
A day later Mr Khan accused the prime minister of being “complicit” in racism for failing to condemn Mr Anderson‘s comments that “pour fuel on the fire of anti-Muslim hatred”.
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Lee Anderson says Reform Party will be ‘a major force’
Mr Anderson was ultimately suspended, with the chief whip Mr Hart saying this was due to his “failure to apologise”.
Mr Anderson said at the time that he “fully” accepts the party had to suspend him – adding that he “will continue to support the government’s efforts to call out extremism in all its forms – be that antisemitism or Islamophobia”.
A subsequent parliamentary investigation found he had committed a “very serious breach” of the rules and recommended he be suspended from the Commons for 35 days, a punishment backed by MPs.
Image: Former Tory MP Scott Benton. Pic: PA
Mr Benton resigned before that could happen, triggering a by-election in his Blackpool South constituency which will coincide with next month’s local elections.
He had denied wrongdoing and appealed the suspension but the ruling was upheld. Had he not resigned, he would have faced being removed from his seat via a re-call petition which would have triggered a by-election if 10% of eligible voters in the area backed it.
Bob Stewart
Bob Stewart, who represents Beckenham in southeast London, surrendered the party whipafter he was found guilty of a racially-aggravated public order offence.
Mr Stewart was convicted after telling Bahraini refugee Sayed Ahmed Alwadaei to “go back to Bahrain” during the incident in December 2022.
In overturning the decision, Mr Justice Bennathan said that while the words amounted to abuse, it was not believed that they caused Mr Alwadaei harassment, alarm or distress.
Crispin Blunt
Former minister Crispin Blunt had the whip suspended pending the outcome of the police investigation into allegations of rape and possession of controlled substances, which he denies.
Image: Crispin Blunt identified himself as an MP who was arrested last October
The Reigate MP announced his arrest in October, calling it “unnecessary” but saying he was ready to co-operate and “I am confident will end without charge”.
Mr Blunt has said he does not intend to contest the next election. In January he was re-bailed until April.
Peter Bone
Image: Peter Bone was removed in a recall petition
Disgraced ex-Tory MP Peter Bone lost his seat after being removed by constituents in a recall petition. The move came after he was suspended as an MP over bullying and sexual misconduct claims, which he denies.
Mr Bone’s partner was chosen to run as his replacement in the subsequent Wellingborough by-election. Labour managed to achieve a swing of 28.5% – the largest swing of this parliament at the time.
Chris Pincher
Image: The Chris Pincher allegations led to the downfall of Boris Johnson
Former deputy chief whip Chris Pincher quit parliament in disgrace after losing his appeal against a suspension from the Commons following groping allegations made in June 2022.
David Warburton stood down from his seat in Somerton and Frome last summer while being investigated for claims of sexual misconduct. Mr Warburton, who was suspended over the allegations 14 months earlier, denied making unwanted advances but did admit to drug use.
Image: David Warburton, the former MP for Somerton and Frome
In his resignation letter he said he had been denied a fair hearing by the Independent Complaints and Grievance Scheme (ICGS) and prevented from “speaking out” while it investigated the accusations.
An independent panel later found the investigation into claims he sexually harassed someone was “materially flawed“, but said it had made “no findings on the substance of the complaint against the respondent, or the allegation that the complaint was fabricated”.
Julian Knight
Image: Julian Knight. Pic: PA
Juian Knight was suspended as a Conservative after a serious sexual assault allegation was made against him.
Mr Bridgen was kicked out of the Conservative Party last year after comparing COVID vaccines to the Holocaust.
Image: Andrew Bridgen was expelled over COVID vaccine comments
The North West Leicestershire MP claimed a “consultant cardiologist” told him COVID jabs were “causing serious harms”, adding that the vaccine programme was “the biggest crime against humanity since the Holocaust”.
He stood by his comments following his expulsion, saying he would use his “newfound freedom” as an independent MP “to fight for justice for all those harmed, injured and bereaved due to governmental incompetence”.
Matt Hancock
Image: Former health secretary Matt Hancock
Matt Hancock resigned as health secretary in disgrace during the pandemic when he was caught having an affair with his aide and now girlfriend, Gina Coladangelo, in breach of his own social distancing rules.
But it was his appearance on reality TV show I’m a Celebrity… Get Me Out of Here! that caused him to lose the whip.
Mr Hancock was heavily criticised by MPs, including Mr Sunak, who said MPs should spend their time “serving constituents”.
Brandon Ferrick, general counsel at Douro Labs, said that the Securities and Exchange Commission’s (SEC) openness to public input on crypto policy and their roundtable discussions are positive signs that the crypto industry is not currently experiencing regulatory capture.
In an interview with Cointelegraph, Ferrick identified signs of regulatory capture including, a public-to-private sector revolving door of employees, the same roster of attendees at regulatory events, and special treatment given to certain crypto projects. However, Ferrick added:
“The reason why I am not worried today is that a lot of what you’re seeing from the regulatory side, like the SEC, for example, is totally open, public, and there are available opportunities to have conversations with the regulators about changing or thinking about the regulatory structures.”
“[The SEC] has a public portal where you can just submit written commentary on your thoughts for the crypto regulatory environment, and you can schedule meetings with them,” the attorney continued.
Crypto Industry executives and panelists discuss cohesive crypto regulation at the SEC’s first crypto roundtable in March 2025. Source: SEC
As the crypto industry becomes more integrated with the traditional financial system and engages state regulators more, some analysts and executives are worried that the industry is experiencing regulatory capture that will skew incentives and politicize the burgeoning crypto sector.
SEC hosts several roundtable discussions on crypto policy
The SEC has hosted several crypto roundtable discussions and panels, with more slated in the coming months — a sharp contrast from the agency’s regulation-by-enforcement approach under former SEC chairman Gary Gensler.
On March 21, the regulatory agency hosted its first crypto roundtable, which featured crypto industry executives, SEC officials, and even opponents of the crypto industry.
Former SEC official John Reed Stark was highly critical of the industry and opposed comprehensive regulatory reform, arguing that digital assets must comply with existing securities laws.
Former SEC official John Reed Stark addresses the SEC’s March 2025 crypto roundtable. Source: SEC
The SEC’s April 11 roundtable focused on trading rules and included a different set of panelists, including representatives from Uniswap and Coinbase.
Whales and institutions are increasing their Bitcoin holdings ahead of Easter, as market analysts predict a weekend with less volatility after two weeks of heightened volatility driven by escalating global trade tensions.
London-based investment firm Abraxas Capital acquired 2,949 Bitcoin (BTC) worth more than $250 million during the four days leading up to April 19.
In the latest transaction, the firm bought over $45 million worth of Bitcoin from Binance on April 18, according to crypto intelligence firm Lookonchain, citing Arkham Intelligence data.
The investment came days after Michael Saylor’s Strategy bought $285 million worth of Bitcoin at an average price of $82,618 per BTC, as the world’s largest corporate Bitcoin holders signal continued confidence in Bitcoin, amid global tariff uncertainty.
Large Bitcoin investors, or whales, continue accumulating, absorbing over 300% of Bitcoin’s yearly issuance as exchanges continue losing coins at a historic pace, Cointelegraph reported on April 18.
Crypto analysts eye quiet Easter weekend after weeks of turmoil
Despite continued accumulation from whales and institutions, volatility concerns were raised by significant movements from the medium-term Bitcoin cohort, which holds coins for an average of three to six months.
Over 170,000 Bitcoin entered circulation from the medium-term cohort, a development that may signal “imminent” crypto market volatility, according to pseudonymous CryptoQuant analyst Mignolet.
“The effect of this metric on LTF moves is overstated as large onchain movement of coins hardly ever affects weekend price action since it’s not on liquid markets or CEX markets,” analysts at Bitfinex exchange told Cointelegraph, adding:
“It is important to note that funding rates remain relatively flat currently. Moreover, US markets are closed as we have a long weekend for Easter, so volatility could be suppressed barring headlines from the White House.”
Marcin Kazmierczak, chief operating officer of RedStone Oracles, added that the recent movements may be operational transfers, not necessarily signs of imminent selling pressure.
Still, concerns over weekend volatility have been amplified over the past two weeks after the Mantra (OM) token’s price collapsed by over 90% on Sunday, April 13, from roughly $6.30 to below $0.50, triggering market manipulation allegations and highlighting “critical” liquidity issues in the industry.
Two weeks ago, on April 6, Bitcoin fell below $75,000 on Sunday, as investor concerns spread from a record-breaking $5 trillion sell-off from the S&P 500, its largest on record.
The correction was caused by Bitcoin’s 24/7 trading availability, which made it the only large liquid asset available for de-risking on Sunday, Blockstream CEO Adam Back told Cointelegraph.
“On a weekend, there’s not much volume. So you have a worse risk of rapid sort of flash crashes or flash dips that get filled in again,” he said.
The growing adoption of cryptocurrencies may pose risks to the traditional financial system and exacerbate wealth inequality, according to the Bank for International Settlements (BIS).
In an April 15 report, the BIS warned that the number of investors and amount of capital in crypto and decentralized finance (DeFi) have “reached a critical mass,” with investor protection becoming a “significant concern for regulators.”
The size of the crypto market signals that authorities should be worried about the “stability of crypto over and above the role it may have for TradFi and the real economy,” the report states, highlighting the role of stablecoins, which the BIS said have “become the means through which participants transfer value within crypto.”
BIS report on crypto and DeFi’s functions and financial stability implications. Source: BIS
The report calls for targeted stablecoin regulation on stability and reserve asset requirements that will guarantee the redemption of stablecoins for US dollars during “stressed market conditions.”
The report comes two weeks after the US House Financial Services Committee passed the Stablecoin Transparency and Accountability for a Better Ledger Economy, or STABLE Act, with a 32–17 vote on April 2.
The STABLE Act aims to create a clear regulatory framework for dollar-denominated payment stablecoins, emphasizing transparency and consumer protection.
On March 13, the GENIUS Act, short for Guiding and Establishing National Innovation for US Stablecoins, passed the Senate Banking Committee by a vote of 18–6. The act aims to establish collateralization guidelines and require full compliance with Anti-Money Laundering laws from stablecoin issuers.
The BIS also raised concerns about how crypto markets may worsen income inequality by enabling larger investors to capitalize on the emotions of less sophisticated retail participants, as seen during the FTX collapse in 2022.
Whale vs retail activity after FTX collapse. Source: BIS
“As prices tumbled in 2022, users actually traded more,” the BIS report noted. “Most disturbingly, large bitcoin holders (“whales”) were selling as ordinary retail investors (“krill”) were buying.” It added:
“This implies that the crypto market, which is often presented as an opportunity for inclusive growth and financial stability, can be a means for redistributing wealth from the poorer to the wealthier.”
The report concludes that DeFi and TradFi have similar underlying economic drivers, but DeFi’s “distinctive features,” like “smart contract and composability,” present new challenges that need proactive regulatory interventions to “safeguard financial stability, while fostering innovation.”