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Czech Police Arrest Darknet Founder Over $45M Bitcoin Donation Linked to Minister’s Resignation

Highlights:

  • Czech police have arrested a darknet founder linked to a Bitcoin donation tied to a political scandal in Prague.
  • The Justice Minister’s resignation followed a Bitcoin gift from convicted darknet marketplace operator Tomas Jirikovsky.
  • Authorities are focusing on money laundering and drug trafficking in the ongoing probe.

Czech authorities have detained Tomas Jirikovsky in connection with a $45 million Bitcoin transfer. This transfer triggered a political crisis earlier this year. Police carried out the intervention on Thursday, linking the transaction to the resignation of Justice Minister Pavel Blazek in May.

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Chief State Prosecutor Radim Dragoun confirmed that the operation involved securing people and property. However, he gave no details to avoid jeopardizing the case. Local media reported that officers apprehended Jirikovsky in Breclav after he tried to evade capture by climbing onto his home’s roof.

Jirikovsky, a Czech programmer, is known for creating the illegal darknet marketplace Sheep Marketplace. This platform dealt in drugs, weapons, and counterfeit goods. He reportedly generated 680 BTC from the platform before shutting it down in 2013 and stealing an additional 841 BTC from users. In 2017, the Brno Regional Court sentenced him to nine years in prison for embezzlement, drug trafficking, and illegal arms possession. He was released on parole in 2021.

Czech Police Arrest Darknet Founder in Bitcoin Case Tied to Political Scandal

The arrest follows the donation of 468 BTC, valued at roughly $45 million at the time, to the Ministry of Justice earlier this year. Blazek accepted the funds without verifying their source, leading to mounting public criticism after the media revealed they came from Jirikovsky, a convicted criminal.

The current Justice Minister, Eva Decroix, commissioned an audit that declared the ministry should not have accepted the gift, as it could be linked to illegal activity. Officials released the results in July, piling more political pressure on the government. The scandal prompted a no-confidence vote in June that Prime Minister Petr Fiala barely managed to survive. Opposition leaders have since pressured for further resignations, such as Finance Minister Zbynek Stanjura.

Investigators have attributed the donation to the darknet marketplace Nucleus, which they claim has 5,000 BTC in its wallet. Arkham Intelligence tracked a transfer of $77.5 million connected to a Nucleus wallet in March, initially active nine years ago.

Expanded Investigation Targets Money Laundering and Drug Trafficking

The National Centre for Combating Organized Crime conducted Thursday’s raids, confiscating assets and arresting those involved in the case. According to prosecutors, the investigation is currently on alleged money laundering and drug smuggling. Police are working with blockchain analysts to track the Bitcoin and identify other potential beneficiaries. They have provided no further information, claiming they need it to ensure the integrity of proceedings.

Authorities severed the inquiry from a wider investigation that began in May, enabling prosecutors to focus on the donation and related criminal conduct. Authorities have also pointed to the possibility of additional arrests as they trace the electronic trail. Justice Minister Decroix has vowed to publish an extended chronology of the case, which includes over 8,000 entries, in order to offer transparency before the October parliamentary elections.

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