Key Takeaways
- Justice Minister Pavel Blazek resigned after selling $45M in Bitcoin donated by a convicted criminal.
- The Bitcoin came from Tomas Jirikovsky, a former dark web operator sentenced for drug trafficking.
- Police have opened an investigation into the source of the Bitcoin following public outrage.
Czech Justice Minister Pavel Blazek has resigned following public backlash over his ministry’s acceptance and sale of nearly 500 Bitcoin—worth close to $45 million—donated by a convicted criminal.
Origin of the Bitcoin donation
The Bitcoin originated from Tomas Jirikovsky, the operator of the defunct dark web platform Sheep Marketplace.
He was convicted in 2017 for drug trafficking, weapons violations, and embezzlement.
Jirikovsky’s lawyer approached Blazek in March, offering one-third of his holdings as a donation.
Blazek accepted without investigating the source of the funds.
Blazek’s response to the controversy
Blazek said at a press conference:
I have no way to investigate the matter, and I wasn’t interested so many years after the case,
He added that he believed the donation was an act of repentance.
Intended use of the funds
The funds raised from the sale were intended for projects like digitizing the justice system and improving prison conditions.
However, public and political backlash mounted after the Czech outlet Denik N exposed the donation’s origins.
Opposition leaders called it a scandal, and police have launched a formal investigation into the Bitcoin’s legitimacy.
Political repercussions
Amid the controversy and with elections approaching, Prime Minister Petr Fiala distanced himself from Blazek.
On May 30, Blazek announced his resignation, stating:
I do not wish to damage the reputation of the government or the governing association.
Context of cryptocurrency regulation
The scandal follows recent cryptocurrency regulatory developments in Czechia, including new legislation signed in February aligning the country’s digital asset laws with the EU’s MiCA framework.
