The Czech Republic’s ruling coalition has narrowly survived a no-confidence vote triggered by a scandal involving a $45 million Bitcoin transaction from a convicted darknet operator to a high-ranking official. The political drama, which has dominated headlines for weeks, tested Prime Minister Petr Fiala’s leadership and raised serious concerns about crypto oversight and public trust in government institutions.

A Crypto Donation with Political Fallout

The scandal erupted when former Justice Minister Pavel Blazek accepted 468 Bitcoin—worth over $45 million at the time—from Tomas Jirikovsky, a convicted darknet drug trafficker. The digital assets were initially confiscated by the authorities but returned to Jirikovsky following a legal technicality. Instead of redirecting the funds through law enforcement channels, Blazek oversaw their sale, with 30% of the proceeds going to the state treasury.

Critics claimed the move allowed proceeds from criminal activity to enter public funds without sufficient scrutiny. The backlash was swift, with opposition lawmakers accusing Blazek of undermining judicial integrity and laundering tainted money under the cover of legality.

Facing mounting public outrage and political pressure, Blazek resigned on May 30. Although he maintained his innocence, the damage to the government’s image was already done.

Parliament Vote: A Close Call

On June 18, 2025, the Czech parliament convened for a high-stakes no-confidence vote. Of the 192 members present, 94 voted in favor of ousting the government, while 98 voted to keep it in power—just enough to ensure the coalition’s survival. This marks the fourth no-confidence attempt since Fiala’s administration took office in 2021.

Prime Minister Fiala described the motion as a political attack, stating that the opposition “used the meeting as always – to throw dirt, insults, and lies.” However, the vote revealed how fragile his coalition’s grip on power has become, especially ahead of national elections in October.

A New Minister, A Pledge for Transparency

Following Blazek’s resignation, Eva Decroix was sworn in as the new Justice Minister on June 10. She immediately ordered an independent audit of the Bitcoin transaction and pledged full cooperation with any ongoing criminal investigations. Her appointment is seen as a move to restore credibility and distance the administration from the scandal.

“We need transparency and accountability,” Decroix said in a statement. “This situation demands a thorough review, not just of one transaction, but of the entire regulatory framework surrounding digital assets.”

Opposition Gains Momentum Ahead of Elections

The scandal has significantly boosted the standing of the populist opposition party ANO, led by billionaire Andrej Babis. ANO party officials claim the incident exposes systemic flaws in how the Fiala government handles financial oversight, particularly in the fast-evolving crypto space.

Recent polls show ANO leading 32% to 20% over Fiala’s Together (SPOLU) coalition, suggesting a strong swing in voter sentiment ahead of the upcoming October 3–4 parliamentary elections. ANO has pledged to overhaul crypto regulation and restore public trust if it returns to power.

Bitcoin’s Role in Czech Politics Grows

This is not the first time Bitcoin has made waves in the Czech Republic. Earlier this year, Czech National Bank (CNB) Governor Aleš Michl proposed adding up to $7 billion worth of Bitcoin to the country’s reserves—a bold step that would make the Czech Republic the first Western nation to hold crypto in its central bank vaults.

Michl’s proposal sparked widespread debate and remains under review, but it highlights how digital assets are becoming a major issue in Czech economic and political discourse.

Public Concern Over Crypto Oversight

The controversy has also intensified scrutiny of how governments manage crypto donations and asset seizures. Critics argue that existing frameworks are inadequate for handling large digital asset transfers, particularly when linked to criminal backgrounds.

“It’s not just about one minister,” said political analyst Ivana Novotna. “This episode shows the urgent need for better crypto governance at every level—from law enforcement to the highest offices.”

Conclusion: A Government Survives, but Questions Remain

Although Prime Minister Fiala’s coalition narrowly survived this no-confidence vote, the scandal has left a lasting mark. With national elections just months away, the ruling coalition faces a difficult road ahead—one filled with voter skepticism, heightened media scrutiny, and calls for tighter control over crypto-related activity.

The Bitcoin scandal has brought digital assets to the center of Czech politics. And while the government has dodged collapse for now, its ability to maintain public trust in the digital age remains an open question.