Czech Justice Minister Pavel Blažek announced his resignation amid a high-profile scandal related to the sale of cryptocurrency received as a gift from a convicted criminal. The transaction amounted to over one billion Czech crowns, equivalent to approximately 45 million US dollars.
This is reported by Business • Media
Details of the Bitcoin Scandal
At the end of May 2025, the Czech Ministry of Justice released a report on the auction sale of about 500 bitcoins (BTC) that were received as a gift. It was estimated that the cryptocurrency was sold for 956.8 million crowns. The funds were intended to be allocated to financing state programs, particularly in the fight against drug trafficking in correctional facilities.
According to local media reports, these bitcoins came from Tomáš Jiřikovský, the founder of the darknet marketplace Sheep Marketplace. In 2017, Jiřikovský was convicted but was released after five years. During the investigation, police seized a cryptocurrency wallet containing 1,561 BTC, and by early 2025, he managed to recover these assets.
In March, Jiřikovský’s lawyer approached the Ministry of Justice with a proposal to donate part of the bitcoins (468 BTC) as a gift. It was these funds that were sold during the auction at the end of May.
Motivation and Consequences of the Resignation
According to European publications, Pavel Blažek was aware of the origin of the cryptocurrency but believed that Jiřikovský was genuinely remorseful and sought to make amends for the harm caused.
“Blažek emphasized that neither the lawyer nor the former criminal demanded anything in return. At the same time, he made the decision to resign to avoid discrediting the government.”
Czech Prime Minister Petr Fiala stated that he trusts Blažek’s integrity but respects his decision to leave office. Candidates for the position of the new Minister of Justice are currently being considered.
However, the situation is complicated by suspicions that the bitcoins donated by Jiřikovský may be linked to the activities of another darknet marketplace — Nucleus. In this regard, the Czech police are trying to block the received funds during the investigation of possible money laundering obtained through criminal means.
It is worth noting that Jiřikovský himself has repeatedly claimed the legality of the origin of the bitcoins.
Earlier, it was reported that the Czech authorities exempted investors in crypto assets who have held them for more than three years from capital gains tax.