Political upheaval stirs in the Czech Republic due to controversy surrounding Bitcoin donations
In a dramatic turn of events, a political crisis has erupted in the Czech Republic, leading to the resignation of Justice Minister Pavel Blazek and a vote of no confidence against the government. The crisis was sparked by the donation of Bitcoin to the Czech Ministry of Justice, which has been the subject of intense scrutiny and investigation.
The opposition, led by Andrej Babiši of the ANO party, has been demanding the resignation of the entire government or a vote of no confidence against Prime Minister Petr Fiala. The opposition's accusations, which weaken trust in the government just a few months before the October parliamentary elections, centre around the Bitcoin scandal.
On March 7, 2025, the Czech Ministry of Justice received a donation of 468 Bitcoin, worth around 956.8 million Czech crowns (40 million euros). The Bitcoin originated from convicted drug dealer Tomáš Jiríkovský, who was sentenced to several years in prison for embezzlement, drug trafficking, and illegal possession of weapons in 2017.
Independent analyses suggest that the wallet seized from Jiríkovský originally contained around 5,366 Bitcoin, worth approximately 12.5 billion crowns (536 million euros). The Bitcoin intended for the ministry were transferred in five transactions on March 7, four from an account of the darknet marketplace Nucleus and one directly from Jiríkovský's wallet.
However, findings raise questions about the transparency and diligence of the Ministry of Justice. Analyses show that Jiríkovský and his lawyer accessed the wallet a day earlier and transferred hundreds of Bitcoin to two wallets. This raises concerns that the government may have conducted insufficient checks and potentially legitimized illegal funds.
The case underscores the importance of clear legal frameworks and transparent procedures in how law enforcement agencies handle Bitcoin and other cryptocurrencies, especially when they come from questionable sources. The example of Germany shows that prematurely selling seized Bitcoin can result in significant missed profits.
In response to the scandal, Pavel Blazek announced his resignation on May 30, 2025. His resignation was in agreement with Prime Minister Petr Fiala and was due to the ongoing Bitcoin scandal. The Czech Public Prosecutor's Office has since launched an investigation into the matter.
Meanwhile, the Czech central bank remains skeptical of the idea of a Bitcoin reserve. As the investigation continues, the political landscape of the Czech Republic remains uncertain, with the outcome of the October elections potentially hinging on the resolution of the Bitcoin scandal.
