- Justice Minister resigns after accepting Bitcoin donation from convicted drug trafficker.
- Czech authorities probe $45M Bitcoin sale linked to darknet criminal.
- Blažek insists the donation followed the law, aimed at improving public services.
The Czech Republic’s Justice Minister, Pavel Blažek, has officially stepped down following a major scandal involving the sale of nearly $45 million worth of Bitcoin. Bitcoins were given to the Ministry of Justice by Tomáš Jiřikovský, who was convicted of drug trafficking and operating on the darknet. The story shocked many and sparked concerns about transparency and who is legally accountable.
Czech Bitcoin Sale Triggers Criminal Investigation
The controversy began on May 28, when the Ministry of Justice announced on X (formerly Twitter) that it had sold approximately 500 Bitcoins and raised a total of 1 billion koruna. The ministry explained that the money would be allocated to updating the justice system, combating drug issues in prisons, and improving the housing conditions for prison staff.
But matters got worse very fast. As reported by Deník N, Bitcoin was originally owned by Tomáš Jiřikovský, who set up Sheep Marketplace, a darknet platform for trading illegal products. Jiřikovský was arrested and sentenced to four years in jail for dealing drugs and stealing money. When the police arrested him, they found over 1,500 Bitcoins in a wallet stored on his computer.
Jiřikovský was released in 2021, but more recently, he offered up a portion of his possessions to the justice ministry. But the authorities in the Czech Republic have now begun investigating this donation. The National Centre for Combating Organized Crime is checking the suspicious transaction for signs of money laundering. They have already paid a visit to the ministry and gathered the necessary documents.
Blažek Defends Bitcoin Deal Before Stepping Down
Still, Blažek defended why the ministry was acting the way it was. He said that all the rules and regulations had been followed for that donation. According to Blažek, the money was meant to support public services. Moreover, he believed Jiřikovský donated it as a way to apologize for his past actions.
Furthermore, reports suggest that one-third of Jiřikovský’s assets were to be handed over to the ministry as part of a settlement agreement. Blažek explained they settled the deal by consulting with Jiřikovský’s lawyer. In March 2025, the official transfer occurred, and the money was used for public service projects.
Still, the public and media reacted strongly. Many people believe Blažek acted unethically during the Bitcoin case. Additionally, some suspect he tried to hide possible evidence of a crime. However, Blažek insisted he followed all rules and did nothing wrong. Still, he chose to resign to avoid hurting Prime Minister Petr Fiala’s government before the October elections.
According to Prime Minister Fiala, he believes Marek Blažek was honest in what he did, and he respected that he chose to resign. At the moment, the Public Prosecutor’s Office in Olomouc is examining whether the minister acted outside his powers by receiving the donation.
Overall, the initial idea of supporting justice reforms has expanded into a nationwide debate. This demonstrates how handling cryptocurrency can be difficult, mainly when it involves anyone involved in crime. The conclusions of the probes may change the way Czech institutions respond to digital currencies later on.
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