As a result of reports that the ministry received a large Bitcoin donation from a previous darknet operator, Czech Republic’s Minister of Justice Pavel Blažek has resigned in his position. A total of 480 BTC or over $45 million, was donated by Tomáš Jiřikovský, a person who was recently linked to Sheep Marketplace, a now-defunct website.
Bitcoin donation triggers political fallout
The government’s confirmation of the sale of the Bitcoin given to it prompted groups and the media to quickly attack the decision. Recently, Jiřikovský, who finished his four-year term in jail for drug trafficking and embezzlement, gave an undisclosed amount to the institution. His first business operated the darknet site Sheep Marketplace, which was closed in 2013 when it was suspected of scamming millions from its customers.
Authorities discovered a wallet with more than 1,500 Bitcoins on Jiřikovský’s computer during his 2016 arrest. His past and the unclear origin of the new Bitcoin raised questions among critics, who accused Blažek of poor judgment and even speculated on possible money laundering.
Despite denying any wrongdoing, Blažek resigned to avoid damaging Prime Minister Peter Fiala’s coalition government. With national elections scheduled for October, analysts believe the incident could impact the ruling party’s performance.
Minister defends the ministry’s actions
According to Blažek, the law allowed the donation and its purpose was to enhance the justice sector. Plans for the budget included improving how prisons use computers, support for prison workers’ housing and steps to combat drug use. He added that remorse might be the reason for Jiřikovský’s motivation. Blažek’s decision to accept the donation came after negotiations with Jiřikovský’s lawyer. Reports state that one-third of the assets seized during Jiřikovský’s arrest would be donated to the ministry as part of a proposed settlement. The Justice Minister reportedly agreed, leading to a formal agreement and the eventual transfer of the funds in March.
Prime Minister Fiala stated that he believed Blažek acted in good faith and supported his decision to step down under pressure.
Legal authorities investigate Bitcoin transfer
Czech investigators are now examining the donation and the potential legal breaches tied to it. The National Headquarters for Combating Organized Crime is reviewing the transaction, while the Public Prosecutor’s Office in Olomouc is investigating whether Blažek exceeded his authority as a public official.
There are ongoing concerns that the transferred Bitcoin may be linked to another darknet platform, Nucleus, which ceased operations the same day Jiřikovský was arrested.