The Czech Republic’s Justice Minister, Pavel Blažek, has resigned following a political uproar over his ministry’s decision to accept—and later auction—nearly $45 million worth of Bitcoin donated by a convicted dark web operator.
The Bitcoin, totaling nearly 500 BTC, was sold in a high-profile transaction announced on May 28. Proceeds from the sale, amounting to roughly 1 billion Czech koruna, were reportedly earmarked for public initiatives such as digitizing the legal system, addressing prison drug issues, and improving correctional staff conditions.
But the celebration quickly spiraled into scandal after Czech investigative outlet Deník N revealed that the digital assets came from Tomáš Jiříkovský, the former operator of Sheep Marketplace—a notorious darknet platform used for illegal drug and weapons trade. Jiříkovský was convicted in 2017 on multiple charges, including embezzlement and facilitating illicit transactions.
Dark Web Bitcoin ‘Gift’ Sparks Public and Political Backlash
In March, Blažek received an unexpected offer: a Bitcoin donation from Tomáš Jiříkovský, conveyed through Jiříkovský’s lawyer. The proposal involved transferring one-third of the convicted criminal’s Bitcoin holdings to the Ministry of Justice—presented as an act of symbolic repentance.
Instead of investigating the origin of the funds, Blažek accepted the offer. “I had no way of investigating, nor was I particularly interested so many years after the case,” he admitted during a press briefing. The ministry went on to auction the 500 BTC, reaping proceeds worth tens of millions.
The public revelation triggered intense backlash and a formal investigation by Czech law enforcement. Critics argued that accepting funds from a known cybercriminal without proper due diligence amounts to state-sanctioned money laundering.
Jiříkovský, who was released from prison in 2021, has claimed ownership of over 1,500 BTC seized during his arrest—arguing the assets were obtained legally. However, investigators previously tied his holdings to the now-defunct darknet platform Nucleus, raising further questions about the legitimacy of his crypto wealth.
Political Fallout Deepens as Resignation Ends Minister’s Tenure
Under intensifying political pressure and mounting public scrutiny, Pavel Blažek officially resigned on May 30, ending a controversy that has rocked the Czech government just months before national elections.
Prime Minister Petr Fiala, once a close ally of Blažek, has since distanced himself from the embattled minister—signaling a political recalibration as the scandal risks undermining the administration’s image ahead of October’s vote. While Blažek denied any criminal conduct, he acknowledged the broader implications.
“I am not aware of any illegal action. However, I do not wish to damage the credibility of the government or the governing coalition,” Blažek said in his resignation statement.
Ironically, Blažek’s resignation comes just months after President Petr Pavel signed a landmark cryptocurrency framework into law on February 6. The new legislation aligns the country’s crypto policy with the EU’s Markets in Crypto-Assets (MiCA) regulation, introducing simplified tax structures and providing legal clarity for crypto firms and investors.
Quick Facts
- Czech Justice Minister Pavel Blažek resigned after accepting and auctioning nearly $45 million in Bitcoin from convicted dark web operator Tomáš Jiříkovský.
- The funds were intended to support justice reforms but sparked public outrage over money laundering concerns.
- Czech prosecutors have opened an investigation into the donation’s origin and the ministry’s handling of the assets.
- The scandal has intensified political tensions ahead of October’s parliamentary elections.
