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PRAGUE: Czech Republic’s Justice Minister Pavel Blažek has resigned following mounting pressure from the opposition over a bitcoin scandal involving a suspicious donation and its controversial sale by the ministry.
Earlier this year, the Ministry of Justice received a donation of bitcoins, which it later sold for more than 1 billion Czech koruna (over $45 million). The bitcoin scandal erupted when it was revealed that the digital assets had been donated by an individual previously convicted of drug trafficking and other criminal offenses.
Although Blažek denied any knowledge of misconduct, he said he was stepping down to prevent harm to the four-party coalition government led by Prime Minister Petr Fiala. “I don’t want this matter to damage the government,” Blažek stated. Fiala accepted the resignation and expressed appreciation, noting that Blažek had acted in good faith.
Bitcoin Scandal Sparks Accusations of Money Laundering
Blažek, a prominent member of Fiala’s conservative Civic Democratic Party, had been a key figure in the administration. The scandal centers on questions about the origin of the donated bitcoins and the motive behind the donation. The opposition has raised concerns about potential money laundering, given the donor’s criminal background and the lack of transparency surrounding the transaction.
The Czech police’s organized crime unit has launched an investigation into the incident. Meanwhile, the controversy comes at a politically sensitive time, just months ahead of the parliamentary elections scheduled for October 3–4.
The main opposition ANO (YES) party, led by former Prime Minister Andrej Babiš, is currently leading in the polls and is expected to make gains in the upcoming vote. Blažek’s resignation amid the bitcoin scandal could provide further momentum to the opposition’s campaign.
It remains unclear who will replace Blažek as Justice Minister, but his departure marks a significant shakeup in Fiala’s administration just ahead of a critical election season.
