Czech Justice Minister Pavel Blažek resigned on Friday over a bitcoin donation scandal. The news comes at a sensitive time, just ahead of parliamentary elections in October.
The controversy began when it was revealed that the Department of Justice had made a donation earlier this year bitcoin had received and sold it for over 1 billion Czech crowns (more than 45 million dollarThe donor turned out to be a convicted criminal with a history of drug trafficking and other crimes.
The opposition parties accuse Blažek of possibly being involved in money laundering, as it is not clear where the bitcoins came from or why they were donated to the ministry. The case is currently being investigated by the Czech police unit for organized crime.
Blažek says he did nothing wrong, but wanted to prevent the issue from damaging the government. Prime Minister Petr Fiala accepted the resignation and thanked Blažek for his efforts, saying he believes Blažek acted in good faith.
The timing of the scandal is politically sensitive: parliamentary elections are scheduled for October 3 and 4. The populist opposition party ANO, led by former Prime Minister Andrej Babiš, appears to be on its way to an election victory. Blažek's departure could put further pressure on the position of the governing coalition.
Why did Minister Pavel Blažek resign?
He resigned over a scandal surrounding a bitcoin donation from a convicted criminal to his ministry.
What was the problem with the bitcoin donation?
The origin of the bitcoins was unclear, and the donor had a criminal record. The opposition suspects the ministry of possible money laundering.
What are the consequences of his resignation?
The resignation damages the government's image just before the elections, and it is not yet known who will succeed Blažek as Minister of Justice.