Could the bitcoin scandal bring down Czechia's pro-Ukraine government?

On Thursday, 5 June, the Czech Chamber of Deputies convened to address a political scandal unprecedented by local standards – a story combining crime, political intrigue and... bitcoin.

It began with the Czech Ministry of Justice confirming via a brief post on X that it had conducted 78 auctions, selling bitcoins worth 956.8 million Czech crowns – nearly €40 million. Officially, the funds were said to come from an anonymous donor and were to be used for compensating victims of cyber fraud and supporting the chronically underfunded prison system.

Read more about whether there are grounds to accuse the Czech government of corruption and what consequences this scandal could have in the article by Oleh Pavliuk and Yurii Panchenko of European Pravda: Charity or bribe? Will Czechia’s pro-Ukraine government fall over the bitcoin scandal?

But on the same day, journalists from Deník N identified the anonymous benefactor: Tomáš Jiříkovský, a convicted fraudster.

Although donating to government institutions is not illegal in Czechia, and there’s no evidence of personal gain for Justice Minister Pavel Blažek, the situation raised many uncomfortable questions – even among his coalition partners.

Interior Minister Vít Rakušan called the bitcoin sale "highly unusual" and damaging to the government’s image.

Blažek – "after agreeing with Prime Minister" and fellow ODS member Petr Fiala – chose to resign voluntarily to protect the government’s reputation. He also withdrew from his party’s list for the upcoming parliamentary elections, stating, "In my mind, I’ve already left politics."

However, the opposition believes responsibility doesn’t lie solely with Blažek.

Andrej Babiš, leader of the opposition ANO party and a vocal critic of Czech support for Ukraine, initiated a parliamentary debate on 5 June and announced plans to call a vote of no confidence in Prime Minister Fiala.

Though the opposition lacks the votes to bring down the government, it hopes to use the scandal to damage its credibility. Yet Blažek’s resignation undercut a central opposition argument and gave Fiala the opportunity to remind voters that Babiš himself refused to resign over corruption allegations during his own term as prime minister.

"You can’t preach morality if you don’t live by it," Fiala said of his predecessor – and likely future challenger.

Still, the story is far from over. The bitcoin scandal could become a serious threat to the coalition, whose chances of re-election were already slim, and to Fiala personally.

If Fiala’s position weakens further, he may be forced to step down as leader of the ODS, potentially handing control of the party to his internal rival Martin Kuba.

That would be an undesirable outcome for Kyiv, but the bitcoin scandal significantly increases the likelihood of such a political shift.