Czech Minister Resigns Amid Bitcoin Donation Controversy

Czech Justice Minister Pavel Blažek has resigned following a scandal surrounding the handling of a large Bitcoin donation from a convicted criminal. The controversy stems from the source of the funds, which belonged to Tomáš Jiřikovský, founder of the Czech Republic’s largest illegal dark web marketplace, Sheep Marketplace. This marketplace facilitated over 11,000 transactions worth millions of dollars in cryptocurrency during its peak activity in 2013. Following Jiřikovský’s release from prison in 2021 after a nine-year sentence for embezzlement and drug dealing, his Bitcoin wallet, which initially contained a significant amount of Bitcoin (approximately $800,000), has now grown to over $130 million due to the cryptocurrency’s surge in value. The Ministry of Justice returned some of the funds following an investigation. However, questions regarding money laundering have been raised by the National Center for Combating Organized Crime (NCOZ). Public pressure has ultimately led to Blažek’s resignation.