Czech government installs new minister after bitcoin scandal

PRAGUE (Reuters) -Czech Prime Minister Petr Fiala appointed a new justice minister on Tuesday to replace political veteran Pavel Blazek, who triggered a political storm when he accepted a payment to the state by an ex-convict worth $45 million in bitcoin.

Outcry over the payment could dent the ruling coalition's chances in an October 3-4 election in which they trail the opposition. Blazek, a respected lawyer, has said he did nothing illegal but resigned his post and quit Fiala's Civic Democrat (ODS) party after accepting the donation from a man convicted of running an online drug market.

Fiala named Eva Decroix as the new justice minister and said she was coming at an important time "to restore trust in the ministry and ensure full transparency around the donated bitcoins." He told her to request an immediate independent audit.

The man who made the donation of 468 bitcoins was in jail from 2017 until 2021 after being convicted of involvement in the drug trade, fraud and illegal possession of weapons.

The opposition ANO party plans a no-confidence vote in the government that is likely to fail but may harm Fiala and his allies in voters' eyes.

Blazek was attacked for possibly legitimising the ex-convict's assets, instead of turning to prosecutors or police to help secure them.

Opposition leader Andrej Babis, a former prime minister whose ANO party looks on course to win the most votes in October's election, has blasted the government for corruption.

(Reporting by Jan LopatkaEditing by Alexandra Hudson)