Czech Justice Ministry Changes Leadership After Controversial $45M Bitcoin Donation from Convict

Czech Justice Ministry Shaken by $45m Bitcoin Donation from Ex-Convict

The Czech Republic’s Justice Ministry faces renewed pressure after Prime Minister Petr Fiala appointed Eva Decroix as the new justice minister, following the resignation of Pavel Blažek amid a political storm.

Blažek stepped down last month after it emerged his ministry accepted a donation of 468 Bitcoin, valued at about €40 million, from Tomáš Jirčovský — a convicted criminal linked to an illicit online drug marketplace.

Why Did The Bitcoin Donation Spark Controversy

The donation came from Jirčovský, who was jailed from 2017 to 2021 for offences including drug trafficking, fraud, and illegal arms possession, due to his role in operating Sheep Marketplace, a Silk Road-style darknet platform.

Blažek’s ministry accepted the Bitcoin on behalf of the state and sold it earlier this year.

While Blažek insisted the transaction was legal and intended to benefit the government, critics argued it risked legitimising criminal funds and bypassing proper legal safeguards.

Opposition parties quickly seized on the issue, accusing Blažek of failing to follow proper procedures and raising concerns about potential money laundering.

The controversy grew into a political crisis, prompting Blažek not only to resign but also to leave Fiala’s Civic Democrat party.

He said,

“The scandal had become a distraction for the ruling coalition and risked undermining public confidence.”

What Role Does The New Minister Play Amid Political Pressure

Fiala acknowledged the seriousness of the situation, describing Decroix’s appointment comes at a crucial moment “to restore trust in the ministry and ensure full transparency around the donated bitcoins.”

He has instructed her to initiate an independent audit into the transaction and related ministry activities.

This step aims to bring clarity and rebuild confidence after the scandal shook public trust.

The timing is critical, as the Czech Republic prepares for parliamentary elections on 3–4 October.

The opposition ANO party, led by former prime minister Andrej Babiš, has used the controversy to highlight what it calls government failures.

Babiš commented that the incident reflects a broader breakdown in oversight.

Though the ruling coalition currently holds a majority in the lower house, analysts warn the scandal could influence voter sentiment in a tightly contested election.

How Is The Scandal Affecting The Government’s Standing

The government remains likely to survive an expected no-confidence vote prompted by opposition demands.

However, the fallout from the Bitcoin case continues to cast a shadow.

Police investigations by the organised crime unit are ongoing, and Czech President Petr Pavel emphasised that “public trust in the institutions and the state is at stake.”

Decroix faces a demanding task: to stabilise the ministry’s credibility and steer it away from the controversy before the election.

Fiala expressed his appreciation for Blažek’s resignation, stating he believed Blažek had acted in good faith despite the political turmoil.

However, a X user, known as Ondřej Tesárek, did not think Blažek’s resignation was a right move and “loss of Blažek is irreplaceable”.

“A political culture where any victory for the state against crime is rewarded with the end of a career. [...] Blažek was ready to defend himself and score, but he was not allowed to. Journalists are confused about Bitcoin, they don't understand it, they throw house numbers and don't know which one is the best.”

He believed,

“The state should have cleaned its billion and left the rest of its Bitcoins marked as problematic for AML.”

Decroix’s actions in the coming weeks will be closely watched as a test of the government’s commitment to transparency and accountability in the face of a scandal with wide-reaching political implications.