tl;dr
Czech Justice Minister Pavel Blažek resigned on May 30 after his ministry sold approximately $45 million in Bitcoin donated by Tomáš Jiřikovský, a convicted drug trafficker. The donation of over 480 BTC was liquidated and the proceeds allocated for victim compensation and prison equipment. The accep...
Czech Justice Minister Pavel Blažek resigned on May 30 following controversy over his ministry’s sale of approximately $45 million in Bitcoin. The cryptocurrency was originally donated by Tomáš Jiřikovský, a convicted drug trafficker. The donation comprised over 480 BTC, which was swiftly liquidated. The proceeds from the sale were designated to fund victim compensation and improve prison equipment.
The acceptance of Bitcoin donated by a former offender prompted strong criticism from opposition lawmakers and triggered a police investigation into the origin of the coins and the ministry’s acceptance procedures. Despite denying any illegal wrongdoing and defending the transaction as lawful restitution, Blažek stepped down to prevent damage to the government’s reputation.
Jiřikovský, arrested in 2016 for operating an illicit online market for drugs and medicines, served four years on charges of embezzlement and drug trafficking. Blažek argued that a convicted individual should be permitted to make reparative donations to the state, referencing Czech law that allows government receipt of property after court-ordered forfeitures.
Prime Minister Petr Fiala agreed with Blažek’s resignation and announced plans to appoint an interim minister. The government will await the results of the ongoing police investigation before determining how to allocate the Bitcoin sale proceeds. The Justice Ministry has pledged full cooperation with authorities throughout the inquiry.
This episode highlights the complex intersection of cryptocurrency, legal governance, and political accountability. It raises important questions about ethical considerations in accepting assets derived from criminal activity and the transparency required when governments engage with digital assets.