Czech Bitcoin Scandal: €40M Crypto Sparks Resignation

Czech Bitcoin Scandal: €40M Crypto Sparks Resignation

Bitcoin Scandal Triggers Political Fallout

PRAGUE — The Czech government is reeling after a €40 million Bitcoin donation linked to a convicted criminal ignited a national scandal. The explosive controversy has led to the resignation of Justice Minister Pavel Blažek and raised urgent questions about the potential misuse of state institutions for laundering cryptocurrency.

Dark Web Origins of the €40M Donation

The scandal emerged after Tomáš Jiříkovský, a convicted operator of the illicit “Sheep Marketplace” dark web platform, donated approximately 468 bitcoins—worth around 1 billion Czech koruna—to the Ministry of Justice. Jiříkovský claimed the gesture was a form of repentance, but critics argue it is a textbook case of reputational laundering through state channels.

Minister Resigns Amid Crypto Controversy

Justice Minister Pavel Blažek accepted the donation without fully verifying its criminal origins. Under growing public and political pressure, and facing accusations of negligence, Blažek resigned on May 30. His departure came as opposition leaders called for broader accountability within Prime Minister Petr Fiala’s administration.

Law Enforcement Investigates Alleged Laundering

The High Prosecutor’s Office in Olomouc and the police’s organized crime unit have launched investigations into potential money laundering and abuse of authority. The probe is expected to examine not only the donation’s legality but also the internal decision-making process that allowed its acceptance.

Public Trust at Risk Ahead of Elections

With parliamentary elections set for October 3–4, the scandal has cast a shadow over the Czech government’s credibility. As calls intensify for further resignations, the incident threatens to reshape the political landscape and weaken public confidence in state oversight of cryptocurrency transactions.


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