The Czech Ministry of Justice finds itself under fire after a recent audit uncovered major failures in how it handled a Bitcoin donation. Officials accepted Bitcoin from a convicted criminal without reviewing the risks. They did not check the source of the funds or consider the legal and ethical implications.
Grant Thornton published the report on July 31 and shared it through the ministry’s official account. Auditors said the ministry ignored red flags. It accepted Bitcoin from Tomáš Jirčikovaky, a man convicted for running a dark web marketplace used for illegal drug sales. Despite his criminal past, the ministry took his donation without asking questions.
Officials sold Bitcoin without checking its source
Later, it sold the Bitcoin for nearly 957 million CZK, equal to about $45 million. Even then, officials did not assess the origin of the funds. The audit found no evidence that anyone reviewed the transaction before approving it. The ministry treated it like a normal gift, even though the situation clearly called for extra caution.
The Ministry of Finance also came under criticism. It accepted the sale proceeds without launching a formal review. Auditors described the process as a serious failure in governance. They warned that the actions of both ministries could bring legal and ethical problems.
Public outrage followed soon after the report came out. People had already questioned the ministry’s handling of the situation. The findings only confirmed their concerns. In June, the backlash led to a no-confidence vote in the government, though it did not succeed.
Bitcoin scandal forces Czech justice minister to resign
However, Justice Minister Pavel Blažek resigned amid the growing pressure. Blažek tried to downplay the audit. He said the report showed no laws were broken. He argued that it only repeated risks that were already known. Still, the damage was done.
The report raised fresh doubts about how government bodies handle digital assets and public trust. The scandal shows how important due diligence is, especially when it involves cryptocurrencies.
Without clear rules, even a donation can turn into a national issue. The case has left many wondering how deep the oversight failures go and whether any lessons will lead to real changes. For now, the ministries involved remain silent on what steps they will take next.
