The cryptocurrency was later sold by the ministry for roughly 1 billion koruna (about $45 million).

Although Blažek maintained his innocence and stated he was unaware of any illegal activity surrounding the donation, he stepped down to avoid further reputational damage to the government. “I don’t want to damage the reputation of the government, nor the governing coalition,” he posted on X.

According to local media reports, Czech prosecutors have launched an investigation into the origins of the Bitcoin. Despite Blažek’s insistence that there was no evidence the funds were illicit, reports suggest the donation came from a known criminal previously convicted on drug charges.

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Prime Minister Petr Fiala responded to the resignation by defending Blažek’s intentions. While stating he believed the minister had acted in good faith, Fiala also described the resignation as a “responsible” decision amid rising public scrutiny. The resignation comes just months before national elections, with Fiala’s coalition trailing in the polls.

The case has sparked wider discussions about transparency and regulatory oversight in the handling of crypto assets by public institutions.

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