The Czech Justice Minister Pavel Blazek resigned after a scandal concerning the sale of the Bitcoin donated by a convicted drug dealer value almost 45 million US dollars.
The controversy broke out on May 28 after the Ministry on X almost 1 billion Czech Koruna (approx. 45 million US dollars) built up by almost 500 Bitcoin (BTC).
The funds were intended for projects resembling the digitization of the judicial system, combating drug use in prisons and the advance of housing buildings for prison staff.
However, the Czech news channel Denik N revealed that Tomas Jirikovsky's cryptocurrency got here, a convicted criminal behind the sheep market, a dark web platform known for the sale of illegal goods.
Source: Ministry of Justice of the Czech Republic
The Czech minister accepts Bitcoin donation
In March, Jirikovsky's lawyer approached Blazek and offered a 3rd of Bitcoin to the Ministry of Justice as a donation. Blazek accepted without examining the origins of cryptocurrency.
“I even have no option to examine the matter and I didn't interest that a few years after the case,” he said at a press conference on Thursday and suggested that the donation reflected Jirikovsky's wish.
However, the general public outcry grew through the dearth of due diligence of the transaction. Opposition leader referred to it as a scandal, and the police have now began an investigation of the origins of Bitcoin.
Jirikovsky was convicted of embezzlement, drug trafficking and weapon injuries in 2017. Since he was released from prison in 2021, he desires to confiscate 1,500 Bitcoin on the time of his arrest.
During his process, the Czech authorities suspected that the funds were connected to Nucleus, one other dark web market that was closed shortly after Jirikovsky's arrest. Nevertheless, he claimed that the Bitcoin was legally acquired, which made it possible for him to maintain it after his prison sentence.
Blazek resigns after the assembly pressure
Prime Minister Petr Fiala distanced himself from Blazek, a protracted -term political ally, distanced himself with increasing pressure and legislative elections.
Then Blazek returned on May thirtieth. “I’m not aware of any illegal measures. However, I don’t need to wreck the federal government or the federal government association's status,” he said in his explanation.
On February 6, Czech President Petr Pavel signed a “pioneering” cryptocurrency laws into the law and provided the Czech Republic's regulatory clarity about digital assets that correspond to the broad laws of the European Union.
The latest laws simplifies crypto tax rules and implements the EU markets within the regulation of crypto-assets (mica) “in a way that supports innovation and development of your complete industry”.
