Czech Police Arrest Darknet Founder in $45M Bitcoin Donation Case

Czech police have arrested Tomas Jirikovsky, the founder of the illegal darknet marketplace Sheep Marketplace, in connection with a $45 million Bitcoin donation that led to the resignation of former Justice Minister Pavel Blazek earlier this year. The investigation began after authorities intervened in a Bitcoin donation case that triggered Blazek’s resignation on Thursday. While specific details remain unclear, some reports suggest Jirikovsky was involved and may have sought to avoid further legal consequences by paying the minister with cryptocurrency. 468 BTC was allegedly donated through Nucleus, another darknet platform known for illicit activities, according to sources. 468 BTC was reportedly donated to Blazek in an attempt to secure a reduced sentence. The arrest occurred after Jirikovsky attempted to escape authorities while they were conducting a raid at his residence. Jirikovsky’s alleged crimes are linked to a significant Bitcoin fortune, with estimates suggesting he amassed over 1,500 BTC during the operation of Sheep Marketplace before its shutdown in 2013. Despite a nine-year prison sentence for drug trafficking and other crimes, Jirikovsky was released on parole in 2021. This arrest highlights the ongoing struggle to track criminal Bitcoin activity, with blockchain analytics firm Arkham Intelligence tracing a $77.5 million Bitcoin transaction from a Nucleus wallet in March 2023.