Pavel Blazek stepped down as Czech Justice Minister on May 30 after public outrage over his acceptance of a 500 BTC donation (worth 【$45 million】) from convicted drug trafficker Tomas Jirikovsky. The funds came from Sheep Marketplace, a notorious dark web platform Jirikovsky operated before his 2017 arrest.
Records show Jirikovsky's lawyer approached Blazek in March offering one-third of the seized Bitcoin. ——"I wasn't interested in investigating the source after so many years,"—— the minister later admitted, claiming he believed it was an act of repentance. The ministry subsequently auctioned the crypto, raising nearly 1 billion Czech koruna for prison system upgrades.
Opposition leaders quickly labeled the transaction a scandal, noting Blazek failed to conduct due diligence on funds potentially linked to multiple dark web marketplaces. With elections approaching, Prime Minister Petr Fiala distanced himself from his longtime ally. Police have since launched an investigation into the Bitcoin's origins.
The scandal erupted just months after Czechia implemented landmark crypto legislation aligning with EU's MiCA framework. Ironically, the country's National Bank recently rejected proposals to hold Bitcoin reserves, citing volatility concerns. ——This case highlights the ongoing tension between crypto adoption and regulatory oversight—— in Central Europe.
Jirikovsky, released in 2021, continues fighting for return of his remaining 1,500 BTC. Meanwhile, Blazek maintains no illegality occurred but resigned to "protect the government's reputation." Analysts suggest the case may delay further crypto policy developments as authorities scrutinize dark web fund flows.