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Notes -
"How Czech Republic managed to get its Ministry of Justice investigated for money laundering of cca 4000+ bitcoin from a darknet drug marketplace"
“It was so ultra-legal that it couldn’t be more legal,” the justifiably former Minister of Justice Pavel 'Don Pablo' Blažek. [1]
Finally, some a bit 21st century news. I put this into CW and not 'fun' because 'populists might benefit'.
In march of '25 , the Ministry of Justice in Czech Republic accepted about $40 million gift in the form of 864 bitcoin. I briefly remembered the news item: MoJ is selling bitcoin in auction.
Now, the justice minister has resigned, the ministry is being investigated for money laundering, the minister is being investigated for abusing his position and Tomáš Jiříkovský, who gave the gift is missing.
The timeline, so far, seems to be something like:
2013/3: Tomáš opens Sheep Marketplace (SM) opens. Initially scarcely used and amateurish, it gets a lot of users after Silk Road collapses.
2013/10: Silk Road closes. People flood to SM
2013/12: SM hacked, 5400 client bitcoin stolen according to its admins. Real amount is unknown, possibly up to 96,000.. Tomáš closes the market and pockets the rest of the bitcoin clients had there.
2014-2016: Tomáš runs 'Nucleus', another darknet marketplace. He tries to launder the stolen money and attracts NCOZ (kind of like Czech FBI without counterintelligence duties).
2016/4/12 Tomáš is arrested by the Czech police.
2016/4/13 Nucleus marketplace stops responding and again, client bitcoin go missing. It's obvious Tomáš was running Nucleus. Police never investigate him for this.
2018: Tomáš is sentenced to 9 years for drug trading, embezzlement and illegal weapons to 9 years. His electronic devices areconfiscated. State intends to wipe it to prevent the perp from benefitting from the proceeds of a crime. The perp's lawyers contest this.
2021: Tomáš is out due to good behavior. He starts to petition the courts, first to prevent data destruction, then to return his seized devices.
2025/1 The courts finally rule that he can get them all back.
2025/3 For no ostensible reason, Tomáš proposes to gift the Ministry of Justice (MoJ) about $40 million in bitcoin that's supposedly not stolen. There's going to be an expert witness present to attest to that it's not stolen darknet bitcoin, the transaction will be overseen by a notary too. This happens and is covered in crypto news, who are of course unaware of who is involved.
2025/5/30: this hits the news, perhaps due to Tomáš, who seems to be an ADHD guy with a vocational school degree only, making the list of richest people in Czech Republic. Revelations soon follow: the expert witness was paid by Tomáš. The wallet was opened 10 hours before the notary got there - they did not want to waste his time while dealing with the encrypted wallet. It's determined up to 4000 bitcoin were sent from the wallet to various addresses before the notary got there to witness the gift to MoJ.
2025/6 Tomáš departs for parts unknown - probably because people missing their bitcoins are are offering bounties for his whereabouts. Minister of Justice resigns. FBI gets involved.
Some important notes: most everyone involved in this case is connected to Masaryk univerzity in Brno (~750k), the second largest city in Czech lands, much hated by people from the capital.(1500K). Tomáš's grandfather was a professor there. The prime minister and the justice minister both studied there. Tomáš lived in Břeclav, a town close to it.
My suspicions: based on the lot of Czech language info I've read on this case, it looks like the justice minister ensured the courts ruled to not wipe the devices, and some of the other bitcoin were likely gifted to people backing the staunchly pro-war and pro-American government parties. The courts obliged but in their verdicts strongly protested and said the bitcoin were proceeds of a crime. Of course, this implies the prime minister knew about this too. But the it's believed is the justice minister is more influential than the PM, and claimed to be ' regional godfather',
If you want to know more, some sources in Czech:
https://cs.wikipedia.org/wiki/Bitcoinov%C3%A1_kauza
https://zandl.substack.com/p/97-jak-tomas-jirikovsky-a-ministr
[1]: the two time justice minister is suspected of being a grey eminence / involved in many shady influence deals. https://www.idnes.cz/zpravy/domaci/pavel-blazek-ministr-spravedlnosti-rezignace-profil.A250530_165132_domaci_ikul
Bitcoin continues to be useless for organized crime due to the transparency and permanence of the blockchain . There is no way to cash out even if the transactions are anonymous and not tied to a person.
There was that guy who bought a bunch of boxes of magic cards using bitcoin gained from some sort of criminal activity. The guy selling the magic cards was not a crypto-savvy guy. (And then the criminal sold the magic cards.)
I saw that. It's amazing how much MTG cards have appreciated over the past 25 years that the market can absorb such a large transaction. It's like an asset class in and of itself. someone should make a MTG card ETF or an ETF of MTG and Pokémon.
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