Overview

• Pavel Blažek denied any wrongdoing and said he stepped down to protect the government’s reputation despite claiming no knowledge of illicit activity.
• The ministry accepted bitcoins from convicted drug trafficker Tomas Jirikovsky and later sold them for roughly 1 billion Czech koruna (about $45 million).
• Blažek stated that the proceeds were earmarked for justice system digitization, combating drug use in prisons and providing housing for prison staff.
• Both the police organized crime unit and state prosecutors have opened probes into the origin and handling of the bitcoin donation.
• With Oct. 3-4 parliamentary elections approaching, the controversy has heightened questions about coalition stability and could strengthen Andrej Babiš’s ANO party.