David Edwards
Following a contentious $45 million Bitcoin transaction connected to illegal activity, the largest opposition party in the Czech Republic, ANO, filed a vote of no-confidence in the ruling administration, causing further political unrest. Tensions are rising two months before national elections, and the vote is set for Tuesday.
The no-confidence move was made Thursday by Alena Schillerová, the vice chair of the right-wing ANO party, who accused the administration of corruption and a lack of openness in relation to the sale of Bitcoin that had been seized from a convicted felon.
Allegations of Corruption Arise After the Sale of Bitcoin
The Czech Justice Ministry said on May 28 that it had sold about 500 Bitcoin at auction for 1 billion Czech koruna ($45 million), which was worth around $104,000 per Bitcoin at the time. The bitcoin had previously been taken from Tomas Jirikovský, who ran an online black market and was found guilty in 2017 of embezzlement, drug trafficking, and firearms crimes.
After the sale, ANO called for a thorough examination of the ministry’s actions, including questions about who approved the sale, whether the Bitcoin’s source was adequately checked, and who stood to gain the most from the deal. Additionally, according to the opposition party, several auction participants are already asking for refunds and are unsure of how any monetary losses will be covered.
Amid mounting pressure, the justice minister resigns
Pavel Blažek, the Czech Justice Minister, resigned on May 30 in the aftermath of the controversy, citing the necessity to maintain the government’s credibility before the next elections. Blažek claimed that his resignation was a precautionary step to avoid worse political repercussions and denied any misconduct.
Since then, Eva Decroix has been sworn in as the new justice minister by President Petr Pavel. Decroix has confirmed that the Ministry of Justice will fully assist with the investigation and promised to start an independent inquiry into the Bitcoin transaction. “We will provide cooperation in the investigation of the donation case,” she stated.
Cryptocurrency Issues Have an International Impact
As world leaders are being scrutinized more and more for their participation with cryptocurrencies, the Czech Bitcoin issue comes to light. President Javier Milei of Argentina came under fire for endorsing the Libertad project’s Solana-based coin, Libra (LIBRA), which surged to $4.56 billion in market capitalization for a brief moment before falling 94% after Milei withdrew his support. He was eventually exonerated of any legal infractions by Argentina’s anti-corruption office, which concluded that his acts were taken in a personal capacity.
President Donald Trump’s cryptocurrency endeavors have garnered notice in the United States as well. Democratic senators began a subcommittee investigation and presented legislation in May to limit Trump’s ability to make money from his cryptocurrency-related commercial ventures.
