Czech Government Survives Bitcoin Donation Scandal Amid Political Turmoil

Published at 2025-06-19 23:07:51

On June 18, 2025, the Czech centre-right government, led by Prime Minister Petr Fiala, successfully survived a no-confidence vote triggered by a bitcoin-related scandal that has shaken the nation's political landscape. The controversy centered around former Justice Minister Pavel Blazek, who accepted a $45 million donation in bitcoin—specifically 468 bitcoins—from a convicted cybercriminal on behalf of the state. This donation represented nearly 30% of holdings that courts had returned to the ex-convict earlier in the year.

The donor, jailed between 2017 and 2021 for operating the illegal online drug market Sheep Marketplace, also faced convictions for fraud and illegal arms possession. The largest opposition party, ANO, initiated the no-confidence motion, accusing the government of enabling the legitimization of potentially illicit funds through this acceptance.

Despite Blazek's resignation on May 31, where he denied any illegal conduct, Prime Minister Fiala acknowledged that accepting the bitcoin donation was a significant political and ethical error. Critics argued that the acceptance should have involved law enforcement rather than direct acceptance by a government official.

After two days of intense parliamentary debate, Fiala's coalition, which holds a majority in the lower house, defeated the motion. The incident has intensified political tensions just months before the general elections scheduled for October 3-4, with ANO currently leading in the polls.

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