A controversial $45 million Bitcoin donation by an entrepreneur convicted of working a darkish internet market is rocking the Czech political scene.
A Bitcoin (BTC) donation is shaking the Czech political panorama. On Thursday, June 12, the Czech opposition known as for a no-confidence vote on the government over alleged corruption. The scandal includes the donation of 468 bitcoins, value $45 million, to the state by an ex-convict.
The benefactor was Tomáš Jiříkovský, a controversial entrepreneur and drug trafficker who operated a darkish internet market for unlawful medicine. He was convicted in 2017 for drug trafficking, fraud, and unlawful weapons possession, and served his sentence till 2021.
The fee, which was made to the Justice Ministry, was accepted by then-Minister Pavel Blazek. The funds had been later liquidated into fiat and transferred to the state treasury. Nonetheless, the donation prompted pressure from the opposition, and Blazek was pressured to resign on Might 31.
Whereas the funds got to the state slightly than to the minister personally, the opposition questioned the origins of the funds. The opposition accused the government of accepting the bitcoins with none AML or KYC checks. With out verifying their origin, it’s inconceivable to know whether or not they had been linked to criminal activity.
Czech story mirrors ‘Silk Street’ scandal
Jiříkovský’s operations intently resemble these of Ross Ulbricht, the founding father of Silk Street. The platform was one of many first locations the place Bitcoin might be readily used, nevertheless it was additionally a hub for unlawful drug trafficking. Ulbricht was pardoned in January 2025 by President Donald Trump after serving 11 years in jail. Apparently, in June, he obtained a 300 Bitcoin donation from a “questionable source.”
The scandal is rocking the crypto-friendly Czech government, which had hoped to draw crypto companies with its versatile stance on MiCA laws. It additionally dangers undermining public belief in Bitcoin by associating it with unlawful operations.
