The Czech Republic finds itself embroiled in a Bitcoin controversy following the resignation of Justice Minister Pavel Blažek on Friday. This incident has prompted opposition leaders to advocate for the resignation of the coalition government within the week.
News broke late last week regarding Blažek’s acceptance of a substantial donation in Bitcoin, valued at approximately $45.8 million when he sold it in March, according to reports from the Associated Press. Opposition figures have voiced concerns about the origins of this donation.
The controversial donation came from Tomas Jirikovsky, a convicted felon known for his past involvement in the Sheep Marketplace. Jirikovsky was imprisoned in 2017 for offenses including embezzlement, drug trafficking, and illegal arms trading.
In March 2025, Jirikovsky’s attorney allegedly proposed that his client would donate 30% of his Bitcoin holdings to the ministry. The police had previously confiscated the wallet containing this Bitcoin but returned it to Jirikovsky upon his release in 2021.
Poslední veřejná dražba se uskutečnila včera 27. května, celkem bylo úspěšně realizováno 78 elektronických aukcí a do majetku státu směřuje 956,8 mil. Kč. Více informací se dozvíte na zítřejší tiskové konferenci. Akreditace jsou možné zde: https://t.co/5PYWFoeGNS https://t.co/1FoG3NXIoI pic.twitter.com/hUzce16hxy
— Ministerstvo spravedlnosti ČR (@SpravedlnostCZ) May 28, 2025
Blažek admitted that he did not investigate the provenance of the coins, stating, “I have no way to investigate the matter, and I wasn’t interested so many years after the case.” He suggested that Jirikovsky may have intended the donation as a form of repentance.
Despite his claims, Blažek noted that courts had not established that the Bitcoin was linked to criminal activity.
However, opposition leaders contend that important questions remain unanswered regarding Jirikovsky’s motivations for the donation and the origins of the Bitcoin itself, insinuating potential money laundering. They insist the state should refrain from utilizing these funds until the matter is resolved.
In the meantime, the High Prosecutor’s Office in Olomouc has initiated an investigation into the case, focusing on allegations of abuse of official authority and the laundering of criminal proceeds.
While Blažek has refuted any wrongdoing, he chose to resign to prevent damage to the coalition government led by Prime Minister Petr Fiala, who expressed confidence in Blažek’s intentions.
Czech Coalition Government in Danger?
Reports from Brno Daily indicate that the lower house is scheduled for an urgent session on Thursday, where opposition members plan to call for the coalition government’s resignation, as stated by the deputy leaders of the ANO and SPD parties, Karel Havlicek and Radim Fiala.
“We will want the government to find sufficient self-reflection and resign,” Havlicek stated. Although the current cabinet might aim to remain in power until the parliamentary elections in October, he added that it should not wield the authority to make significant decisions.
Should the coalition refuse to step down, he warned that they are “very strongly considering calling a no-confidence vote in the government.”
Fiala, representing the far-right SPD, affirmed his party’s support for an extraordinary session and the no-confidence vote.
Conversely, lower house speaker Jan Skopecek dismissed the opposition’s initiatives as mere “theatre” ahead of the elections, asserting that Blažek’s resignation negates the necessity for the cabinet to resign.
Additionally, Czech Fiscal Council chairman Mojmir Hampl remarked that this situation poses several critical technical questions that may not be addressed before the elections.
Further investigation by Le Monde revealed that Jirikovsky has been attempting to reclaim around 1,500 Bitcoin seized by the police since his incarceration. The court reportedly suspected that these coins originated from Nucleus, a dark web marketplace that allegedly ceased operations the day after Jirikovsky’s arrest.
Market analysts have noted that some Nucleus-linked Bitcoin, dormant since 2016, was moved to new wallets in March, coinciding with the signing of Blažek’s agreement, according to reports.
Jirikovsky claims he retained the Bitcoin legally, while Blažek has asserted he made no promises in exchange for the donation. These allegations are expected to be central to discussions in the upcoming emergency session.
The unfolding situation has raised significant concerns and questions surrounding the integrity of governmental actions and the implications of cryptocurrency dealings in the Czech Republic.
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