The Czech government narrowly escapes collapse as a billion-crown Bitcoin scandal involving criminal donations rocks the Justice Ministry, forcing the resignation of its minister amid accusations of money laundering.
Key Takeaways
- Czech Prime Minister Petr Fiala’s coalition government survived a no-confidence vote with 98 deputies opposing the motion and 94 supporting it, falling short of the 101 votes needed.
- The Ministry of Justice accepted and sold Bitcoin worth nearly 1 billion Czech koruna ($47 million) from a person with a criminal background, raising serious money laundering concerns.
- Justice Minister Pavel Blažek resigned over the scandal, claiming he was unaware of any illegal activity, and was replaced by Eva Decroix, who promised an impartial investigation.
- This marks the fourth failed no-confidence vote against the Fiala government since 2021, highlighting ongoing political instability as October elections approach.
- The national police’s organized crime unit is actively investigating potential criminal aspects of the Bitcoin donation.
Criminal Bitcoin Donation Ignites Political Crisis
The Czech government narrowly survived a parliamentary no-confidence vote called by the opposition after a scandal involving the Justice Ministry’s acceptance of Bitcoin from a known criminal. The controversial cryptocurrency donation, worth nearly 1 billion Czech koruna ($47 million), came from an individual previously convicted of drug dealing. This transaction immediately raised red flags about potential money laundering and improper conduct within a government ministry that should be upholding legal standards. The opposition seized on the scandal, portraying it as evidence of systemic corruption within Prime Minister Fiala’s administration.
The no-confidence vote, initiated by former Prime Minister Andrej Babiš’s ANO party, received 94 votes in support, falling short of the 101 needed to topple the government. The ruling coalition managed to secure 98 votes against the motion, demonstrating how narrow its parliamentary majority has become. This scandal has significantly weakened the government’s standing just months before elections, with public trust in the administration rapidly eroding as details of the cryptocurrency transaction continue to emerge through media investigations and opposition scrutiny.
Czech government survives no-confidence vote amid bitcoin scandal https://t.co/cSpys1Ilgd pic.twitter.com/IoUovLIOeT
— Euractiv (@Euractiv) June 19, 2025
Justice Minister Resigns in Disgrace
Justice Minister Pavel Blažek resigned in the wake of the scandal, claiming the transaction was “ultra-legal” and that he was stepping down as a form of “penance.” Despite his protestations of innocence, the public perception of impropriety was overwhelming. Blažek’s resignation came after intense pressure from both the opposition and members of his coalition, who recognized the political damage being inflicted by his continued presence in the cabinet. The fact that the Ministry of Justice, of all departments, was involved in accepting funds from a convicted criminal created a perception of hypocrisy that proved politically untenable.
“This is not about individuals. It is about a system in which the Minister of Justice feels untouchable. Prime Minister Fiala’s government has lost its moral authority,” said Andrej Babis, opposition leader and former Prime Minister.
Eva Decroix was swiftly appointed as the new Minister of Justice with a mandate to restore credibility to the ministry. She has pledged to initiate an independent investigation into the circumstances surrounding the Bitcoin donation and its subsequent handling. Meanwhile, the national police’s organized crime unit has launched its investigation into the matter, examining potential criminal violations related to money laundering and abuse of office. These parallel investigations underscore the seriousness with which authorities are now treating the scandal.
Political Fallout and Electoral Implications
Opposition leader Andrej Babiš has not minced words in his criticism, referring to Prime Minister Fiala’s party, the ODS, as a “criminal organization.” This rhetoric reflects the increasingly bitter political divide in the Czech Republic, with the Bitcoin scandal providing ample ammunition for the opposition ahead of the October elections. The scandal has also prompted calls for Finance Minister Zbynek Stanjura’s resignation, as questions mount about how such a suspicious transaction could have been approved and processed through government financial oversight mechanisms.
“Fiala said he believed Blažek acted with goodwill,” reported sources close to the Prime Minister, indicating his reluctant acceptance of the resignation while attempting to minimize political damage.
This marks the fourth no-confidence vote the Fiala government has survived since taking office in 2021, highlighting the persistent political instability that has characterized this administration. The Bitcoin scandal, however, represents perhaps the most serious threat yet to the government’s legitimacy. With polls already showing declining support for the ruling coalition, the timing couldn’t be worse for Fiala and his allies. The controversy also raises broader questions about cryptocurrency regulation and oversight in government institutions, an issue that has gained prominence as digital currencies become increasingly mainstream.
