Bitcoin News Today: Czech justice ministry should reject 45M Bitcoin donation amid political scandal and governance concerns

An external audit has found that the Czech Ministry of Justice should have rejected a $45 million Bitcoin donation, which sparked a major political scandal and led to the resignation of its former head, Pavel Blažek. The audit, conducted by the global accounting firm Grant Thornton, partially released by the ministry itself, concluded that officials failed to take adequate steps to verify the legitimacy of the digital asset before accepting it [1].

The donation came from Tomáš Jiřikovský, a former darknet market operator and convicted drug dealer, who had served time in prison. The 480 BTC was accepted in a form of a gift and later sold in a series of public auctions organized by the ministry. The transaction drew intense scrutiny, with auditors noting that the ministry was aware of significant risks that the donation could originate from the proceeds of criminal activity [1].

The controversy deepened as opposition forces used the issue to initiate a no-confidence vote in parliament, which the government narrowly survived in June. Blažek, a member of the ruling Civic Democratic Party (ODS), was replaced by Eva Decroix, who has pledged to investigate the matter before the October parliamentary elections. The promised probe includes a second phase of the external audit, expected to be published by the end of August [1].

Despite the audit’s recommendations, Blažek maintains that he did not act illegally and insists that the audit does not identify any specific legal violations. He has also argued that unless a court convicts the donor of a crime directly tied to the donated bitcoins, any legal action against the donation would be irrelevant [1].

Blazek emphasized on social media that the audit merely reiterates risks and speculative claims that had already been widely discussed in the public sphere. He further stated that invalidating the donation contract would require the state to return the gift, effectively concluding a decade of "incompetence" in which the state gained nothing from the potential criminal activity of the donor [1].

Finance Minister Zbyněk Stanjura, a colleague of Blažek, refused to resign despite opposition pressure, stating that he had tried to dissuade Blažek from accepting the cryptocurrency. The case has raised broader questions about the need for clearer legal frameworks governing the acceptance of digital assets by public institutions and the importance of aligning internal practices with anti-money laundering and know-your-customer regulations [1].

The audit’s findings underscore the challenges posed by cryptocurrencies in terms of transparency and regulatory compliance. While the ministry’s acceptance of the gift was not found to be illegal, it was deemed to be in violation of good governance principles. The incident highlights the need for increased due diligence and procedural safeguards when dealing with high-value and potentially risky digital assets [1].

The Czech justice ministry has yet to issue a formal response to the audit. However, it is anticipated that the recommendations will lead to a reassessment of current practices and the potential introduction of updated guidelines for handling cryptocurrencies in public administration [1].

Source: [1] title: Czech justice ministry should have rejected crypto gift ... (url: https://www.mitrade.com/insights/news/live-news/article-3-1006131-20250801)