Czech Justice Minister Resigns Over Bitcoin Scandal

This led to an investigation and political fallout just months after the country passed a major pro-crypto law aligned with the EU’s MiCA framework. Meanwhile, Bitcoin maximalist Max Keiser questioned the staying power of new Bitcoin treasury adopters, like Strive and Trump Media. He believes they lack the discipline shown by Strategy's Michael Saylor during bear markets, and warned of potential unsustainable equity premiums. Across the globe, the IMF flagged Pakistan’s decision to allocate 2,000 megawatts for Bitcoin mining and AI data centers, which raised concerns about energy policy and regulatory oversight amid ongoing IMF loan negotiations. 

Bitcoin Donation Forces Czech Minister to Step Down

Czech Justice Minister Pavel Blazek resigned after widespread criticism over his acceptance and subsequent sale of Bitcoin that was donated by a convicted drug trafficker. The controversy began on May 28 when the Justice Ministry announced via social media that it  raised close to 1 billion Czech koruna (or approximately $45 million) by auctioning off close to 500 Bitcoin. These funds were intended to support justice system improvements, including digitization, prison reform, and staff housing.

Post from the Justice Ministry

However, local media soon revealed that the Bitcoin originated from Tomas Jirikovsky, a criminal that was convicted in 2017 for his role in operating Sheep Marketplace, a dark web platform used for trading illegal goods. In March, Jirikovsky’s lawyer approached Blazek with an offer to donate one-third of the Bitcoin he retained after his release from prison in 2021. Blazek accepted the offer without investigating the source of the cryptocurrency, and claimed during a press conference that he had no means to verify the origin and believed the gesture was motivated by a desire to repent.

Pavel Blazek

The revelation sparked public outcry and drew a lot of criticism from opposition leaders, who accused Blazek of gross negligence. The Czech police also launched an investigation into the origin of the donated Bitcoin. 

During his trial, authorities already suspected that Jirikovsky’s crypto holdings were connected to another dark web platform, Nucleus, though Jirikovsky insisted the Bitcoin was legally obtained. This allowed him to keep a portion after serving his sentence.

Due to the growing political pressure and with national elections on the horizon, Prime Minister Petr Fiala distanced himself from Blazek, which ultimately prompted the minister’s resignation on May 30. Blazek held firm that he committed no wrongdoing but stated he stepped down to avoid damaging the government’s reputation.

The scandal happened against the backdrop of a new pro-crypto legislative shift in Czechia. On Feb. 6, President Petr Pavel signed a landmark law regulating digital assets, which aligned the country’s crypto framework with the European Union’s Markets in Crypto-Assets (MiCA) regulation. The legislation aims to simplify taxation and encourage innovation in the digital asset sector.

Max Keiser Questions Bitcoin Treasury Boom

Bitcoin also stirred some doubt from maximalist Max Keiser. He voiced skepticism over the durability of newly emerging Bitcoin treasury companies, and questioned whether they can actually maintain the same level of financial discipline as Michael Saylor’s Strategy during a sustained bear market. 

In a May 30 post on X, Keiser argued that while Saylor famously continued to accumulate Bitcoin through downturns without selling, these newer firms have yet to be tested under similar conditions. He warned that it is “foolish” to assume these so-called Strategy clones will show comparable conviction, and suggested instead that “Strategy is the Bitcoin of BTC treasury plays.”

Saylor’s company serves as a model for crypto-aligned treasury management, and attracted a lot of investor interest from both crypto-native and traditional finance circles. Its stock surged to an all-time high of around $543 on Nov. 21, which ended up pushing a wave of companies to mimic its Bitcoin-centric reserve strategy in hopes of achieving similar financial performance and share price appreciation.

Bitcoin holdings (Source: BitcoinTreasuries.net)

Analysts now warn that this proliferation of Bitcoin treasury adopters could result in corporations collectively controlling more than half of Bitcoin’s total supply. Among the most recent entrants, asset management firm Strive announced its Bitcoin treasury transition on May 7. Just weeks later, the Trump Media and Technology Group, which is a media firm partially owned by US President Donald Trump, disclosed a massive $2.5 billion capital raise to buy Bitcoin.

Another Strategy-inspired company, Metaplanet, saw its shares trade at an implied Bitcoin premium of $600,000, meaning investors are paying nearly six times more for exposure through equity markets than they would by purchasing Bitcoin directly. This growing premium trend is causing concern among market analysts, who warn that such elevated valuations may be unsustainable if market sentiment shifts or if Bitcoin enters a prolonged correction.

IMF Flags Pakistan’s Bitcoin Mining Power Plan

Meanwhile, the International Monetary Fund (IMF) is concerned about Pakistan’s recent decision to allocate 2,000 megawatts of electricity for Bitcoin mining and artificial intelligence data centers. The move is part of Pakistan’s broader digital asset strategy, and was made at a time when the country is engaged in sensitive negotiations for an extended financial assistance program with the IMF. 

According to local news outlet Samaa, the IMF was not consulted prior to the announcement and is now seeking urgent clarification from Pakistan’s Finance Ministry regarding the legality of cryptocurrency mining, the specifics of the electricity allocation, and the broader implications for energy tariffs and national power distribution.

Officials suggest that the IMF’s concerns may complicate the ongoing talks, and sources even pointed out that the economic team is already facing intense scrutiny. The IMF delegation currently in virtual discussions with Pakistani officials is expected to convene a separate session to address the country’s plan to power crypto mining and AI operations.

Pakistan’s strategy is anchored by the establishment of the Pakistan Digital Asset Authority (PDAA), which was approved by the Finance Ministry on May 21. This authority will oversee regulation of exchanges, wallets, stablecoins, DeFi platforms, and the tokenization of national assets, aligning its mandate with international compliance frameworks like those of the Financial Action Task Force (FATF).

Bilal Bin Saqib at the Bitcoin 2025 conference

The announcement also followed Pakistan’s recent unveiling of its first strategic Bitcoin reserve at the Bitcoin 2025 conference. During the event, Bilal bin Saqib, crypto adviser to Prime Minister Shehbaz Sharif, introduced a national Bitcoin wallet. This reflects Pakistan’s shifting stance on cryptocurrencies, which began earlier in 2025 with the proposal of a National Crypto Council to help draft a full regulatory framework and attract international investment.

CZ signing documents

Binance co-founder Changpeng Zhao was appointed as an adviser to the Council in April and is expected to guide policy development, blockchain infrastructure, and crypto adoption across the country.