Bitcoin case in Czechia continuing

As I have described in my blog published on 1st June 2025 ( markethive.com/18226/blog/drugdealerdonatesbt...) a huge affair with bitcoins presented to Czech state by a criminal released from prison began to boil the top politicians.

Overview:

Czech Minister of Justice took 1 billion of CZK in BTC (approx. 45 millions USD) from a criminal who was condemned to years of prison because of his activities on darknet doing business with drugs, weapons etc.

It happened already in March but it came to daylight thanks to some journalists investigations end of May 2025.

Wild facts coming to daylight, continuing scandal for Czech government.

Minister of Justice in demission didn't want to come to Parliament, but he finally came and spoke. He seemed cheerful behind the scenes, but conciliatory in the plenary.

Blažek gave his "most watched speech" He said „This case is not a case of coruption. ! ....

It turned out badly, I won't talk anymore, Blažek apologized. He did not answer questions of parliament members.

  Minister Blažek leaving, questions stay unanswered

Step by step new facts are emerging. In the BTC wallet were not only equivalent of 3 billions of CZK of which one third was presented to Czech state but there were 12,5 billion CZK in bitcoin.

Another fact is that the wallet was opened a day sooner . Next day the notary public issued the donation certificate to the ministry. The notary had no access to the wallet and did not know how much money was in it. He confirmed this in writing in his statement.

Police tried for several years to open the wallet but did not succeed. The regional court recommended that the computer hardware be returned to the imprisoned owner only after all data had been erased, but this was not respected. The owner got it with all data back.

And the criminal of darknet Jiříkovský ? Journalists say he disappeared today most probably direction Asia.

What a surprise :

Bitcoin owner Jiřikovský filed a criminal complaint !

He who donated bitcoins to the Ministry of Justice, filed a criminal complaint against an unknown perpetrator, accusing, for example, the National Center against Organized Crime or the Olomouc High Prosecutor's Office in Czech Republic of leaking information to the media.

Jiřikovský, who has previously been convicted of drug offenses and imprisoned, is upset that information about his large cryptocurrency holdings is appearing in the media. He cites examples of kidnappings of cryptocurrency owners and claims that by disclosing his identity, he has become a potential victim of violent attack.

But all of this information in fact could be found publicly ( court verdict etc.) .

The fact that the main actor in the case is traveling abroad significantly reduces the chances of ever unraveling the complex case. If he does not return to the Czech Republic and tell how it happened, it will forever be just speculation by people who have the story second-hand. But police did not prevent Jiřikovský from traveling in any way. They had no reason to do so, as he had not been accused of anything.

The whole case develops colorfully in the spirit of the wildest comedy.

Tomáš Jiřikovský likely hid significantly more bitcoins than the Czech courts and police were able to track down and clearly prove as proceeds of crime. While the courts acknowledged that Jiřikovský received at least 679 bitcoins as commissions from Sheep Marketplace (an online marketplace he founded and managed), blockchain analysis shows that a total of 1,173 bitcoins passed through the address, with some later transferred to the Bitstamp exchange and the rest anonymized using bitcoin mixers.

Now already even FBI engaged in it.

 Tomáš Jiříkovský several years ago

Czech crypto-expert explains:

A Bitcoin mixer is a service that "mixes" bitcoins from different users in a way that masks the origin and destination of specific transactions. This method of anonymization makes it significantly more difficult, if not impossible, to trace the origin of digital currencies on the blockchain. The complexity of these methods has made it impossible to trace the tens of thousands of other bitcoins that disappeared from the Sheep Marketplace.

Blockchain is a shared ledger. We can think of it as a file in which all transactions are written. And gradually more are added all the time. The book is shared on thousands of different computers all over the world. Anyone can connect to it and share this book with the records of all transactions. And thanks to this, we have a clear, transparent ledger that is not managed by a single entity, but is shared in a decentralized manner.

But in such a ledger, you only see anonymous pseudo-addresses. You don't see the specific person who is making the transaction... Yes, you see pseudo-addresses, but some of them are known because there are people who do it, and there are tools that help to figure out who owns which address.

So typically, for example, the addresses of cryptocurrency exchanges are known. That sheds some light on it. And above all, if I publish my address somewhere and tell you to send me bitcoins to it, from that moment on you can associate the address with me. You can even find out from the blockchain to which other addresses I have sent or received cryptocurrency. And so you can get a picture of which bitcoins at different addresses I can control.

What is Nukleus Market, where Bitcoins arrived as a gift to the state? It is a black market. People log in there anonymously, without their IP address (a unique numerical identifier assigned to each device connected to the Internet - ed.). As a result, illegal trades can take place there. Drugs and even child pornography were typically sold on this market

To hide the origin of bitcoins, so-called mixers are also commonly used, in which a larger number of transactions are processed together. Are mixers also used for legitimate purposes? Definitely. If only because I don't need the whole world to know how much money I have and where, so it gives me privacy. Imagine that you make some money on bitcoin. Their price skyrockets, for example, a hundredfold, and at that moment you don't need someone to come to your house with a hammer and try to beat the bitcoins out of you.

The plus of this case - people who were not interested until now will learn more about bitcoin.

            Thanks for reading

                                              Margaret

Source:

Several Czech news webs: aktualne.cz, idnes.cz, seznam.cz