Czech Justice Minister Pavel Blažek resigned on May 30 after his ministry sold approximately $45 million in Bitcoin (BTC) that was donated by a man convicted of drug trafficking.
Reports from local media indicated that a state wallet received over 480 BTC, which was then liquidated for nearly one billion Czech koruna. The proceeds were allocated for victim-compensation funds and prison equipment.
The donation raised concerns among opposition lawmakers regarding the acceptance of assets from a former offender. Subsequently, the police initiated an investigation to determine the origin of the coins and the circumstances surrounding the ministry’s acceptance of them.
Following the commencement of the investigation, Blažek chose to resign from his position, which he had held since December 2021. In a statement issued on May 30, he mentioned:
“After discussions with Prime Minister Petr Fiala, I have opted to step down as Minister of Justice. While I am not aware of any illegal activities, I do not wish to tarnish the reputation of the government or the governing coalition.”
The donation in Bitcoin was made by Tomáš Jiřikovský, who was arrested in 2016 for operating an illegal online marketplace for drugs and medications. He subsequently served a four-year sentence for embezzlement and drug trafficking.
Minister’s Justification
Defending the transaction, Blažek informed the press on May 29 that the donation was in compliance with Czech laws and could be interpreted as a form of restitution by the donor.
He stated:
“Why should a convicted individual not have the opportunity to make amends by offering something to the state?”
Additionally, the Justice Minister referenced legal provisions that permit the government to accept assets following court-ordered forfeitures.
State broadcaster ČT24 reported that Prime Minister Petr Fiala also deemed the transfer to be lawful.
The prime minister’s office announced plans to appoint an interim minister and await the findings of the police inquiry before determining the distribution of the auction proceeds. The justice ministry has pledged its full cooperation with the investigators.