Suspected money laundering: Czech justice minister resigns over Bitcoin donation
In the Czech Republic, a scandal surrounding a convict's Bitcoin donation has shaken the government. Now a minister has announced his resignation.
(Image: kitti Suwanekkasit/Shutterstock.com)
The Czech Minister of Justice has resigned due to a scandal surrounding a Bitcoin donation to his ministry, and the opposition is even demanding the resignation of the entire government. This was reported by Radio Prague, which quotes Pavel BlaĹľek as saying that he did not want to damage the reputation of the government and the coalition. According to the report, his ministry accepted Bitcoin from a man who was sentenced to prison in 2017 for embezzlement, drug trafficking and illegal possession of weapons. The cryptocurrency was then sold for one billion Czech crowns (more than 40 million euros), whereupon the opposition raised suspicions of money laundering.
Bitcoin as a “form of penance”?
The scandal is now hitting the Czech government just a few months before the parliamentary elections. The country has been governed by a multi-party coalition since 2021, with Petr Fiala from the Civic Democratic Party (ODS) as Prime Minister. BlaĹľek is also a member of this party. According to Radio Prague, the minister stated that he could see nothing illegal or immoral in accepting the donation. The suspicion that the crypto money came from criminal activities had not been proven. Prime Minister Fiala added that the money collected would benefit citizens. He was also convinced that BlaĹľek had acted in good faith.
Videos by heise
According to the AP news agency, the sale of the donated Bitcoin from a dubious source took place earlier this year. The opposition criticizes the fact that the origin of the cryptocurrency is unclear and that the sale could have been used to launder the Bitcoin. Furthermore, there is apparently no explanation as to why the convicted man donated cryptocurrency to the ministry in the first place. Shortly before his resignation, Blažek asked: “Why should a convicted person not be allowed to give anything to the state, as a form of penance, for example?” As a result, a police investigation has now also been launched on suspicion of money laundering and abuse of office.
(mho)
