Czech Attorney General Pavel Blazek resigned over the scandal after his foreign ministry sold nearly $45 million in bitcoin donated by a convicted drug trafficker.
Controversy broke out on May 28 after the ministry Posted On X, it raised nearly 1 billion Czech Kruna (about $45 million) (about $45 million) by auctioning nearly 500 bitcoins (BTC).
The funds are targeted at projects to digitize the justice system, combat drugs in prisons, and improve prison staff.
However, Czech news media Denik n reveal The cryptocurrency comes from Tomas Jirikovsky.
Related: Czech Republic Explores New Assets, Skip Bitcoin as $7B BTC Reserve Faces Criticism
Czech minister accepts Bitcoin donations
In March, Jirikovsky’s lawyer approached Blazek, giving one-third of Bitcoin as a donation to the Justice Department. Blazek accepted it without probing the origin of cryptocurrencies.
“I can’t investigate this, and I’m not interested after the case,” he explain In a press conference on Thursday, the suggestion that the donation reflects Girikovsky’s desire to “repent”.
However, there was a strong public outcry over the lack of due diligence in the deal. Opposition leaders marked it as a scandal, and police have now investigated the origins of Bitcoin.
Jirikovsky was sentenced in 2017 for embezzlement of public funds, drug trafficking and weapon assault. Since being released from prison in 2021, he has been seeking to acquire 1,500 bitcoins at the time of his arrest.
Czech authorities suspected the funding was related to the core during the trial, which shut down another dark online market after Jirikovsky’s arrest. Despite this, he insisted on obtaining Bitcoin legally, which allowed him to retain it after serving his sentence.
Related: Czech National Bank governor proposes $7B Bitcoin reserve plan
Brazek resigns after increasing pressure
Facing increasing pressure and a legislative election in just four months, Prime Minister Petr Fiala distanced himself from longtime political ally Blazek.
Blazek then resigned on May 30. “I am not aware of any illegal action. However, I do not want to damage the reputation of the government or the management association,” he said in a statement.
On February 6, Czech President Petr Pavel Signed “landmark” cryptocurrency legislation Enter the law for regulatory clarity of digital assets that are consistent with broader EU law.
New legislation simplifies crypto tax rules and implements EU Market for Crypto Assets (Mica) Regulations “in a way to support innovation and development across the industry.”
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