Czech Prime Minister Petr Fiala’s government narrowly survived a no-confidence vote sparked by a shocking Bitcoin scandal involving almost $47 million in cryptocurrency donated by a convicted drug dealer.
Key Takeaways
- Czech Prime Minister 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.
- Justice Minister Pavel Blažek resigned after his ministry accepted and converted Bitcoin worth nearly 1 billion Czech koruna ($47 million) from a convicted criminal.
- The scandal involved cryptocurrencies donated by a person with a drug-dealing background, raising serious concerns about potential money laundering.
- Eva Decroix has been appointed as the new Justice Minister and has pledged to conduct an independent investigation into the ministry’s handling of the Bitcoin donation.
- This marks the fourth failed no-confidence vote against the Fiala government since it took office following the 2021 elections.
Bitcoin Scandal Rocks Czech Government
The Czech Republic’s coalition government found itself embroiled in controversy after the Justice Ministry accepted a massive Bitcoin donation from an individual with a criminal history. The ministry subsequently converted the cryptocurrency into nearly 1 billion Czech koruna ($47 million), triggering accusations of impropriety and potential money laundering. The opposition, led by former Prime Minister Andrej Babiš’s ANO party, seized on the scandal to call for the government’s resignation through a parliamentary no-confidence vote.
The scandal erupted when it came to light that the Bitcoin donor had previously been convicted of serious offenses, including drug dealing. This revelation raised immediate red flags about the origin of the funds and the propriety of a government ministry accepting such a donation. The national police’s organized crime unit has since launched an investigation into the matter, examining potential violations of anti-money laundering regulations and due diligence failures within the Justice Ministry.
Czech government survives no-confidence vote amid bitcoin scandal https://t.co/cSpys1Ilgd pic.twitter.com/IoUovLIOeT
— Euractiv (@Euractiv) June 19, 2025
Ministerial Resignation and Political Fallout
Justice Minister Pavel Blažek, at the center of the controversy, resigned his position while maintaining his innocence. Blažek claimed the donation was handled in an “ultra-legal” manner and described his resignation as a form of “penance.” Despite stepping down, he insisted he was unaware of any illegal conduct in the acceptance or conversion of the Bitcoin donation. Prime Minister Fiala stood by his minister while acknowledging the issue could have been avoided entirely.
“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 Babiš, leader of the opposition ANO party.
Eva Decroix has been appointed as the new Justice Minister following Blažek’s resignation. She has pledged to initiate an independent investigation into the ministry’s activities related to the Bitcoin scandal. The political repercussions continue to reverberate through Czech politics, with opposition leader Babiš going so far as to label the governing ODS party a “criminal organization” during heated parliamentary debates.
Government Survives Vote but Political Instability Persists
Despite the opposition’s efforts, the no-confidence vote fell short of the required threshold to topple the government. Only 94 members voted against the administration, while 98 deputies opposed the motion, preserving Fiala’s coalition. The vote marked the fourth such attempt since the current administration took office following the 2021 elections, highlighting the ongoing political instability in the Czech Republic.
“Fiala said he believed Blažek acted with goodwill,” reported sources close to the Prime Minister, who has repeatedly defended the overall integrity of his government while acknowledging missteps in the Bitcoin case.
The Bitcoin scandal could significantly influence the upcoming parliamentary elections, scheduled for October. It has already intensified the political divide in the country and raised important questions about cryptocurrency regulations and the transparency of public institutions. The scandal stands as a stark reminder of the challenges governments face in adapting to the rapidly evolving world of digital currencies and the need for clear protocols when handling crypto assets in official capacities.
