Bitcoin scandal can topple Czech government

While the government in the Netherlands has already fallen, a political crisis could start in a second European country in a short time. A Bitcoin payment threatens to bring down the government of the Czech Republic in the coming days. A drug dealer paid the minister of justice around 40 million euros in Bitcoin, something the politician seemed happy to accept. Until the whole story hit the press of course.

Darknet

Czech Justice Minister Pavel Blažek, from Prime Minister Petr Fiala’s conservative Civic Democratic Party (ODS), is causing quite the scandal for the Czech government.

He resigned last Friday amid a scandal involving a €40 million Bitcoin donation to the ministry, which was auctioned off in exchange for cash at a public auction, given to it by a convicted drug dealer. The digital tokens were transferred to him by Tomáš Jiřikovský, who previously ran an illegal darknet website where drugs were sold and who served time in prison for embezzlement, drug trafficking and illegal possession of weapons.

Czech newspaper Deník N reported last week that the police was investigating the donation, prompting the justice minister to resign just a day later.

Blažek, who is also known in Czech political circles as Don Pablo because of previous scandals, including his attendance at a party of a pro-Russian lobbyist and alleged corruption in municipal apartments, said he acted legally but resigned because he did not want the current coalition to suffer because of this episode.

Meanwhile, the judiciary is investigating whether the Bitcoins were earned illegally, in which case the government would have to return the money.