Czech police arrest darknet kingpin in Bitcoin-for-favors scandal

Tomáš Jiřikovský, the infamous founder of the defunct darknet hub Sheep Marketplace, has been taken into custody once again—this time accused of using a massive Bitcoin donation to launder illicit funds and exert political influence at the highest levels of the Czech government. Prosecutors say the investigation links the $45 million transfer directly to money laundering and illegal drug operations, reviving scrutiny of Jiřikovský’s criminal past.

Dramatic Arrest and Ongoing Probe

Czech police detained Jiřikovský late Thursday evening after raiding his home in Břeclav. According to Deník N, officers moved in following months of investigation into a 468 BTC transfer—worth around $45 million at the time—that was made to the Ministry of Justice earlier this year. The 35-year-old allegedly attempted to evade capture by fleeing onto a rooftop before being apprehended.

Chief State Prosecutor Radim Dragoun confirmed the raid was part of a broader probe into both the controversial donation and Jiřikovský’s previous darknet activities. Authorities say they recovered evidence linking the funds to cryptocurrency wallets tied to illicit marketplaces.

From Darknet Fortune to Political Leverage

Jiřikovský first gained notoriety as the operator of Sheep Marketplace, a hidden web platform that facilitated hundreds of Bitcoin-based drug transactions before collapsing in 2013. Court records from his 2017 trial reveal that the site processed over 680 BTC in sales. Before disappearing, Jiřikovský allegedly pulled off an “exit scam,” stealing an additional 841 BTC from user accounts.

These profits—largely untouched by law enforcement—formed the foundation of his immense crypto holdings. Investigators now believe part of this fortune was funneled back into the political system earlier this year via the Ministry of Justice donation, potentially as an attempt to launder funds while gaining influence in government circles.

Previous Conviction and Unfinished Business

Jiřikovský’s criminal history includes a nine-year sentence handed down in 2017 for embezzlement, drug trafficking, and illegal arms possession. However, he was released on parole in 2021 after serving just half the term. Authorities failed to seize the majority of his Bitcoin, a lapse that has returned to haunt the justice system as those coins have resurfaced in this latest scandal.

Blockchain tracing has linked the 468 BTC donation to Nucleus Marketplace, another darknet platform known for illegal goods. The transfer arrived during a politically sensitive pre-election period, triggering one of the most damaging controversies faced by Prime Minister Petr Fiala’s ODS-led government.

Political Fallout and Damning Audit

The scandal has already claimed political casualties. Former Justice Minister Pavel Blažek resigned in June under mounting pressure, and his successor, Eva Decroix, ordered an independent review by auditing firm Grant Thornton.

The audit’s findings were blunt: the Ministry “should not have accepted the bitcoin donation” due to obvious signs of criminal origin. It further suggested that ministry officials may have breached anti-money laundering regulations by processing the transfer without sufficient scrutiny.

With both the criminal investigation and political backlash still unfolding, Jiřikovský’s arrest signals that Czech authorities are now moving decisively to untangle the web of illicit crypto, organized crime, and government entanglement.