Czech police arrest Bitcoin donor, seize remaining ministry crypto over $45M scandal

Police in the Czech Republic have arrested the man who sparked a massive political scandal by donating a significant amount of cryptocurrency to the country’s justice ministry.

The person was detained in a major raid in eastern Czechia, local media reported. Meanwhile, law enforcement authorities also seized digital coins from the department.

Bitcoin donor detained and charged with money laundering

Czech police officers and prosecutors have carried out a large-scale operation in connection with the scandal over a controversial crypto donation for the Ministry of Justice in Prague. The overnight raid was carried out by the National Center against Organized Crime (NCOZ) and the High Public Prosecutor’s Office in the eastern city of Olomouc on Thursday, the Czech radio reported.

Among several individuals detained during the action is Tomáš Jiřikovský, a former drug dealer and darknet market operator, who gave the justice department 468 BTC, worth around 1 billion Czech koruna at the time (approx. $45 million).

The ministry’s decision to accept the crypto gift in March, without thoroughly checking the origins of the digital money, shook the Czech government earlier this year.

It also led to the resignation of its head, Pavel Blažek, as reported by Cryptopolitan in May. Blažek, who stepped down to take political responsibility for the scandal, maintains no wrongdoing on his part.

While surviving a no-confidence vote in parliament, the cabinet of Prime Minister Petr Fiala was forced to deal with the fallout that threatens the ruling coalition’s chances in the upcoming elections this fall.

Blažek’s successor, Eva Decroix, pledged to investigate the case ahead of the vote in October. An external audit, the results of which are yet to be published in full, recently concluded that the justice ministry should have rejected the suspicious donation.

According to a summary of the document that’s being prepared by the global accounting and consulting firm Grant Thornton, officials failed to take appropriate steps to address the risks, falling short of the principles of good governance.

In the press release quoted by the national radio broadcaster, prosecutors said:

“The NCOZ is currently carrying out intensive criminal proceedings in the case linked to the donation of bitcoins to the Ministry of Justice. Investigators are taking steps both to clarify the matter and to secure persons and assets involved.”

Their office also highlighted that they are investigating suspected legalization of illicit money and unlawful production and handling of narcotics and psychotropic substances.

Jiřikovský, who has already spent time in prison for similar crimes, has been charged again with drug trafficking and money laundering.

Czech police seize remaining bitcoins from justice ministry

Meanwhile, Czech law enforcement also seized crypto donated by the convicted drug trafficker from the Ministry of Justice.

On Friday, the ministry took to X to confirm the seizure and reiterate its support for “earlier legal opinions warning that the cryptocurrency likely stems from criminal activity.”

Previous media reports revealed the department had organized a series of public auctions to sell the digital assets. Investigators have now seized the remaining coins.

The ministry also said it’s currently consulting lawyers and contacting potential buyers while considering its next steps. Czech police are also investigating whether the decision to accept the Bitcoin donation involved abuse of power.

Following the partial release of the Thornton report, former Justice Pavel Blažek insisted he acted in good faith and within the law. Posting on social media earlier this month, he noted the audit did not register violations of any legal obligations or regulations.

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