Czech Minister Resigns Over Bitcoin Scandal

In a stunning turn of events, Czech Justice Minister Pavel Blažek resigned on May 30, 2025, amid a controversy involving a substantial Bitcoin donation. The donation, valued at over $45 million, was made by Tomáš Jiřikovský, a convicted criminal known for operating the dark web marketplace “Sheep Marketplace.” Jiřikovský, who had been imprisoned in 2017 for offenses including embezzlement, drug trafficking, and illegal arms possession, sought to reclaim the Bitcoin seized during his arrest. After his release in 2021, he donated a portion of these assets to the Ministry of Justice.

The Ministry of Justice accepted the donation without thoroughly investigating its origins. Blažek, a close ally of Prime Minister Petr Fiala and a member of the conservative Civic Democratic Party, claimed he believed the donation was an act of repentance by Jiřikovský and did not anticipate any legal complications. However, the lack of due diligence prompted public criticism and allegations of potential money laundering. The opposition party ANO, led by former Prime Minister Andrej Babiš, filed a no-confidence motion against the government, accusing it of helping a former cybercriminal legalize his likely-stolen Bitcoin fortune.

Community building for fund raising

Facing mounting pressure and seeking to avoid further damage to the government’s reputation, Blažek resigned on May 30, 2025. He stated that he wasn’t aware of any wrongdoing but didn’t want the four-party coalition government led by Prime Minister Petr Fiala to be harmed by the scandal. Fiala expressed appreciation for Blažek’s resignation and believed he acted with goodwill. The scandal intensified political tensions, with opposition parties calling for additional resignations, including those of Prime Minister Fiala and Finance Minister Zbyněk Stanjura, alleging they were aware of the donation and its dubious origins.

On June 10, 2025, President Petr Pavel appointed Eva Decroix as the new justice minister. Decroix, also from the Civic Democratic Party, announced she would order an independent investigation into the ministry’s activities concerning the donation. The national police’s organized crime unit is investigating the case on suspicion of abuse of official authority, money laundering, and related crimes. The scandal unfolded just months before the October 3–4 parliamentary elections, with the opposition ANO party leading in polls.

The controversy has reignited debates on regulating cryptocurrency donations in national public institutions. Critics argue that Blažek’s acceptance of the Bitcoin effectively legitimized Jiřikovský’s ill-gotten gains instead of involving law enforcement authorities. The incident has raised questions about the adequacy of existing regulations and the need for clearer guidelines on handling digital asset donations.

As the investigation continues, the Czech government faces scrutiny over its handling of the donation and the broader implications for cryptocurrency regulations in public institutions. The outcome of the investigation and any subsequent policy changes will likely have lasting effects on how governments worldwide approach digital asset donations and their integration into public financial systems.

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