Czech Justice Minister resigns over bitcoin scandal amid political fallout

Czech Justice Minister Pavel Blažek resigned on Friday evening amid a growing scandal involving a bitcoin donation to the Ministry of Justice. The cryptocurrency, worth nearly CZK 1 billion, was donated by Tomáš Jiříkovský, a convicted drug trafficker.

Although Blažek denies any illegal conduct on his part, he stepped down to avoid damaging the government's reputation as investigations continue. Coalition leaders praised Blažek's decision as a demonstration of political responsibility.

Opposition figures, meanwhile, have demanded further resignations, including those of Finance Minister Zbyněk Stanjura and Prime Minister Petr Fiala. The case has sparked significant political controversy heading into the weekend.

The Ministry of Justice received 468 bitcoin from Tomas Jiříkovský, who was imprisoned in 2017 for crimes including embezzlement, drug trafficking, and illegal arms possession. Jiříkovský had operated an online drug marketplace and was released from prison in 2021.

The bitcoin originally belonged to him but had been seized by police and later returned after his release. The ministry then sold the donated bitcoin for nearly CZK 1 billion to private investors. Blažek has maintained that he was unaware of any illegal origin of the bitcoin and that the legality of the donation is under police and judicial review.

"There is no legal decision confirming that the bitcoin came from criminal activity," he said, denying any wrongdoing but deciding to resign to protect the government's image. "If proven otherwise, the state will confiscate the remaining assets."

The High Prosecutor's Office in Olomouc is investigating the case on suspicion of abuse of official authority, money laundering, and related crimes. Police are also examining the case for possible narcotics offenses linked to the donation.

The resignation has intensified political tensions ahead of this fall's parliamentary election. ANO leader Andrej Babiš called for the entire government to resign, accusing it of corruption and incompetence.

"The whole government should fall! If you didn’t know, you are useless there," Babiš wrote on X. He asserted that Finance Minister Zbyněk Stanjura and Prime Minister Petr Fiala must also step down, alleging they were aware of the bitcoin case.

Other opposition figures echoed these calls. ANO’s deputy chair Karel Havlíček condemned the laundering of drug money through state institutions, urging additional resignations.

Pirate Party leader Zdeněk Hřib described Blažek’s resignation as the only appropriate response and stressed the need for an independent investigation. SPD leader Tomio Okamura also called for thorough scrutiny of the bitcoin affair.

Coalition members responded more moderately. Interior Minister Vít Rakušan described Blažek’s decision as correct, emphasizing that public trust cannot be compromised. Senate Speaker Miloš Vystrčil similarly underscored the importance of maintaining trust in democratic institutions.

Political analysts suggest the scandal’s impact on the ruling Spolu coalition and upcoming elections might be limited, given Blažek’s swift resignation. Masaryk University political scientist Lubomír Kopeček said the coalition could mitigate damage if voters see this as Blažek’s individual issue rather than a systemic failure involving Prime Minister Fiala and other politicians.

An extraordinary session of the Chamber of Deputies has been scheduled for June 5 to debate the bitcoin case, prompted by opposition demands.