The Czech Ministry of Justice faces scrutiny after it accepted and auctioned off over 480 Bitcoins,  a gift from a convicted drug trafficker, raising nearly CZK 1 billion (€40 million). EPA-EFE/JULIEN WARNAND

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Czech Justice ministry under investigation for auctioning bitcoin gift from convicted drug dealer

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The Czech Ministry of Justice is under investigation for accepting and auctioning a gift of over 480 Bitcoins from a convicted drug trafficker.

The country’s National Centre for Organised Crime (NCOZ) launched the probe on suspicion of money laundering and the legalisation of proceeds from crime.

The cryptocurrency was donated by Tomáš Jiřikovský, who had been sentenced to four years in prison for operating an illegal online drug marketplace, and for embezzlement and drug trafficking.

Despite Jiřikovský’s criminal record, the Justice Ministry confirmed on May 29 it had accepted the Bitcoin and sold it.

The auction raised nearly CZK 1 billion (€40 million).

Justice Minister Pavel Blažek defended the decision, saying he saw no issue in accepting a donation from a convicted person.

“When a billion disappears from a ministry’s account, it’s obviously suspicious. And when a billion appears there for a good cause, that’s supposedly ‘suspicious’ too. Such is the demoralising reality of Czech politics and public discourse,” Blažek said May 28.

At a May 29 press conference, Justice Minister Pavel Blažek emphasised the funds will be used to support the country’s justice system and argued there was no evidence the money was obtained through criminal activity.

“The Ministry of Justice is already utilising these resources to address long-overdue needs,” Blažek stated.

“Specifically, the money will fund anti-drug initiatives, enhance both active and passive security in prisons, support a shelter for women with children under six years old, advance the computerisation of the public prosecutor’s office system and modernise the justice system with a focus on electronic criminal records,” he said.

Interior Minister Vít Rakuša told Czech media outlet Deník N that the circumstances around the donation require clarification, including the donor’s motives and the source of the funds.

“The origin of the money is currently under police investigation,” confirmed the minister.

Czech media reported the funds donated to the ministry may have come directly from accounts tied to Jiřikovský’s criminal operations.

Transparency International Czech Republic, a leading anti-corruption NGO, says the country’s justice minister is downplaying the ethical implications.

“Justice Minister Blažek is not telling the truth when he claims there is no indication the Bitcoins originated from illegal activity,” said David Kotora, its director.

Transparency International further warned accepting such a gift carries significant reputational risks, particularly when cryptocurrencies are involved.