Key Takeaways:
- Czech Justice Minister Pavel Blažek resigned after accepting a $45M Bitcoin donation from a convicted criminal without verifying its origin.
- The Bitcoin, sold by the ministry for government projects, was linked to Tomáš Jiříkovský, known for running a dark web marketplace.
- Amid mounting criticism and an investigation, Blažek stepped down to avoid damaging the government’s reputation ahead of elections.
Czech Justice Minister Pavel Blažek has resigned following backlash over his ministry’s acceptance and sale of nearly $45 million worth of Bitcoin donated by convicted criminal Tomáš Jiříkovský.
The Bitcoin, linked to the now-defunct dark web platform Sheep Marketplace, was auctioned off by the Ministry of Justice to fund public projects, including digital upgrades, drug prevention in prisons, and housing improvements for staff.
Blažek accepted the donation without investigating its origins, later stating he was uninterested in the matter years after Jiříkovský’s conviction.
Czech media exposed the source of the funds, prompting criticism from opposition leaders and the public, who accused Blažek of poor judgment.
Police have launched an investigation into the donation.
Jiříkovský, sentenced in 2017 for embezzlement, drug trafficking, and firearms offenses, was released in 2021 and has tried to reclaim 1,500 Bitcoin seized during his arrest—asserting it was legally obtained.
With national elections approaching, Prime Minister Petr Fiala distanced himself from Blažek, who ultimately stepped down to avoid damaging the government’s reputation.
His resignation comes amid Czechia’s broader effort to regulate crypto, including a new law passed in February aligning national rules with the EU’s MiCA framework to support innovation and improve digital asset oversight.