Surprise in the Country: Bitcoin (BTC) Linked Scandal Leads to High-Level Resignation!

Czech Justice Minister Pavel Blažek resigned following discussions on how his ministry handled a Bitcoin donation from an individual convicted of drug trafficking.

The value of the donation in question reaches approximately 45 million dollars ( one billion Czech crowns ).

At the center of the scandal is Tomáš Jiřikovský, known as the founder of Sheep Marketplace, the largest darkweb illegal market in Czechia to date, which was shut down in 2021. Jiřikovský was sentenced to nine years in prison in 2017 for embezzlement and drug trafficking. Over eleven thousand Bitcoin transactions were made through Sheep Marketplace in 2013 alone, and Jiřikovský took a commission on each transaction.

After Jiřikovský's release, the long legal process that followed resulted in the court deciding at the beginning of the year to return the electronic devices previously seized by the police. Among these devices was a Bitcoin wallet and access codes. At the time of Jiřikovský's arrest, the cryptocurrency worth approximately 20 million kron (, about 800 thousand dollars ), exceeded three billion kron (, approximately 130 million dollars ), due to the rise in Bitcoin prices. The ministry received around one billion kron from this wallet.

However, the National Organized Crime Fighting Center (NCOZ) has launched an investigation to determine whether this transfer is related to money laundering. While detectives arrived at the Ministry of Justice building to collect documents, Blažek stated in a public announcement that the transaction was "very legal" and "could not be more legal."

Following the growing reactions in the public and political circles, Blažek announced his resignation from his position.

*It is not investment advice.

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