Updated on:12/26/2025 06:47 PM 
The Czech Republic's political landscape has been shaken following the resignation of Justice Minister Pavel Blažek on May 30, after his ministry controversially sold approximately $45 million worth of Bitcoin (BTC) donated by a convicted criminal.
According to local media reports, the state treasury received over 480 BTC from an individual with a criminal past. Ministry officials immediately converted the cryptocurrency into fiat currency, receiving nearly one billion Czech koruna (equivalent to more than $45 million). The funds were designated for victim compensation programs and prison facility upgrades.
The unprecedented donation sparked immediate controversy, with opposition politicians raising ethical questions about accepting digital assets from a former offender. In response, Czech authorities launched a comprehensive investigation into both the origin of the cryptocurrency and the legal framework that permitted the ministry to accept such a substantial donation.
Just hours after investigations commenced, Blažek made the decision to resign from his position, which he had held since December 2021. In a May 30 statement on X, the former minister revealed that Tomáš Jiříkovský, the donor, had been arrested in 2016 for operating an illicit online marketplace for drugs and medications. Jiříkovský subsequently served a four-year prison sentence for embezzlement and drug trafficking offenses.
During a press conference on May 29, Blažek defended the ministry's actions, asserting that the Bitcoin donation complied with all applicable Czech legislation and could be considered a form of restitution from the donor.
The former Justice Minister pointed to specific statutes that permit governmental entities to accept property following court-ordered forfeitures, suggesting that the cryptocurrency transfer fell within these legal parameters.
State broadcaster ČT24 reported that Prime Minister Petr Fiala had also endorsed the transaction as lawful under current Czech law. The Prime Minister's office announced plans to appoint an interim minister while awaiting the outcome of the police investigation before determining the final allocation of the cryptocurrency proceeds.
In a statement of cooperation, the justice ministry pledged full transparency and assistance throughout the investigative process, emphasizing their commitment to legal compliance in cryptocurrency matters.
This case highlights the complex intersection of cryptocurrency, government regulation, and legal compliance in an increasingly digital financial landscape. As blockchain technology continues to evolve, governments worldwide are grappling with appropriate frameworks for handling digital assets, particularly those with questionable origins.
