Justice Minister Pavel Blazek resigned from the Czech cabinet on Friday over a bitcoin scandal, with the agreement of PM Petr Fiala (ODS), he announced on social media, adding that he does not wish to harm the reputation of the government or the governing coalition.
His resignation comes four months before the parliamentary elections.
Fiala told reporters that he has a candidate for new justice minister, adding that he will provide further information next week. He did not give the name of the possible candidate.
The opposition called for Blazek’s resignation over the case of CZK 1 billion in bitcoin donated to the Justice Ministry from a man convicted of drug trafficking. Blazek said he was not aware of any illegal conduct on the ministry’s part.
“In agreement with Prime Minister Petr Fiala, I have decided to resign as justice minister,” Blazek wrote. “I am not aware of any illegal actions. However, I do not want to harm the reputation of the government or the government coalition.”
Fiala wrote on social media that he was convinced that Blazek acted in good faith in the case of the controversial bitcoin auction. He said he appreciated Blazek’s decision to resign as minister and said he had played a major role in the modernisation of the Czech judicial system.
“Coincidentally, he decided to resign on the day when the Chamber of Deputies passed an amendment to the Criminal Code that is appreciated by both the professional and lay public. Pavel Blazek has made a great contribution to the modernisation of Czech judiciary, of which the amendment to the Criminal Code is another proof,” Fiala said.
Fiala stood behind Blazek in previous years when the Pirates, then part of the government, called for his removal from the cabinet because of other scandals. The Pirates moved into the opposition last September.
The cryptocurrency was donated to the ministry by Tomas Jirikovsky, who operated an online marketplace for drug sales and was imprisoned in 2017 for embezzlement, drug trafficking and illegal weapons sales. He was released from prison in 2021. He donated 30% of the bitcoins to the ministry from his e-wallet, which was confiscated by the police and returned to the convict after his release from prison.
According to Blazek, if it had been proven that the remaining bitcoins also came from criminal activity, the state would have confiscated them. The case is being investigated by the police’s National Centre against Organised Crime (NCOZ).
The High Prosecutor’s Office (VSZ) in Olomouc is investigating the donation on suspicion of three crimes, including abuse of official authority and laundering of proceeds of crime. Police officers are also investigating the illegal production and distribution of narcotic and psychotropic substances and poisons, VSZ chief prosecutor Radim Dragoun said over the weekend.
“There is no legal proof yet that (the money) came from criminal activity. It is up to the police and the courts to prove it, but there is no decision that it is from criminal activity. If it is proven, the state will confiscate the rest anyway,” said Blazek.