Czech bitcoin scandal sparks fears of state role in money laundering

PRAGUE – The Czech government is scrambling to contain the fallout from a €40 million bitcoin donation linked to a convicted drug trafficker, which forced Justice Minister Pavel Blažek to resign and triggered a National Security Council meeting over fears the state was used to launder criminal proceeds.

Prime Minister Petr Fiala confirmed intelligence services would be involved, warning of new threats posed by cybercrime and the need for institutional resilience. “There is a publicly expressed suspicion that the state may have been misused through the justice ministry, possibly in connection with serious international crime,” Fiala said.

The donation came from Tomáš Jiřikovský, convicted in 2017 for drug trafficking, arms offences and embezzlement. Although the origin of the bitcoin remains legally unproven, the scandal has drawn sharp criticism. President Petr Pavel warned it could erode trust in the justice system, undermine state institutions credibility, and tarnish the Czech Republic’s international standing. “If I had to put it in the voice of the people, I would say this is a big mess,” Pavel told lawmakers.

The opposition, led by ANO’s Andrej Babiš, is pushing for a no-confidence vote in Fiala’s government. “This government is criminal and must go,” Babiš told Deník.cz. He added that “ODS is a criminal organisation that should have been banned long ago.”

While the government frames the affair as a personal failing by Blažek, the political reverberations are deepening.