Czech Justice Minister Pavel Blažek resigned on May 30 after his ministry sold roughly $45 million in Bitcoin (BTC) that a man convicted of drug trafficking had donated.
According to local media reports, a state wallet received more than 480 BTC. Officials immediately liquidated the amount for almost one billion Czech koruna, worth over $45 million, earmarking the proceeds for victim-compensation funds and prison equipment.
The donation resulted in opposition lawmakers questioning the propriety of receiving assets from a former offender. Additionally, police have launched an investigation into the provenance of the coins and the circumstances under which the ministry accepted them.
A few hours after the start of the investigations, Blažek decided to resign from his tenure, which began in December 2021. On a May 30 X post, he stated:
“After agreement with the Prime Minister Petr Fiala, I have decided to resign from the position of Minister of Justice. I am not aware of any illegal actions. However, I do not want to damage the government‘s or the governing coalition’s reputation.”
Tomáš Jiřikovský donated the amount in Bitcoin. Jiřikovský was arrested in 2016 for running an illicit online marketplace for drugs and medicines and later served four years for embezzlement and drug trafficking.
Minister defends transaction
Blažek told reporters on May 29 that the donation complied with Czech law and could be viewed as restitution by the donor.
He argued:
“Why should a convicted person not be allowed to give something to the state, for example, as a form of penance？”
Furthermore, the Justice Minister referenced statutes that allow the government to accept property after clearing court-ordered forfeitures.
State broadcaster ČT24 reported that Prime Minister Petr Fiala also regarded the transfer as lawful.
The prime ministers office said it would name an interim minister and wait for the police inquiry before deciding how to allocate the auction proceeds. The justice ministry has pledged full cooperation with investigators.