Audit Reveals Risky €40 Million Bitcoin Donation to Czech Justice Ministry
An external audit has found that the Czech justice ministry should not have accepted a €40 million bitcoin donation from a convicted drug dealer due to apparent links to criminal activity, reports 24brussels.
The donation, which emerged in June, led to significant political upheaval, culminating in the resignation of then-Justice Minister Pavel Blažek from Prime Minister Petr Fiala’s conservative Civic Democratic Party (ODS).
Following the donation, the ministry auctioned off the bitcoin in a public sale, generating substantial cash influx for the government. However, the audit led by global firm Grant Thornton indicated that the ministry was aware of circumstances suggesting a substantial risk that the donation could be tied to criminal proceeds.
“Prior to accepting the donation, the Ministry of Justice was aware of relevant circumstances indicating a significant risk that the donation could originate from the proceeds of criminal activity,” stated the audit summary released by the ministry on its X account.
The audit concluded that, “Under these circumstances, we believe that the Ministry of Justice should not have accepted the donation without taking further follow-up steps to eliminate this risk.”
Pavel Blažek, the former minister, contested the audit’s implications, asserting that the findings “do not indicate a violation of any specific legal obligation or regulation.” He added, “There are no new findings, just a text designed for headlines, but with outdated content. Although, they say repetition is the mother of wisdom,” in a statement on X.
Currently, the police and the National Headquarters for Combating Organized Crime are probing whether the donation was sourced from laundered funds, casting shadows on the integrity of political financing in the country.
In response to the growing scandal, new Justice Minister Eva Decroix has pledged to investigate the circumstances surrounding the donation ahead of the upcoming Czech parliamentary elections scheduled for October.
