The Federal Court of Canada has declared the emergency law invoked by Prime Minister Justin Trudeau’s government, which allowed the freezing of funds and cryptocurrencies linked to the trucker protests, as unreasonable and unconstitutional.
Justice Richard Mosley, in his January 23 decision, stated that the situation did not constitute a national emergency, rendering the government’s use of the Emergencies Act unjustifiable.
In February 2022, the Trudeau government employed the Emergencies Act for the first time, targeting financial assets, including cryptocurrencies, donated to truckers protesting COVID-19 vaccination mandates. These mandates required truck drivers crossing the Canada-United States border to be fully vaccinated. The truckers, known as the “Freedom Convoy,” had used their vehicles to blockade streets in Ottawa, leading to significant disruptions.
The Canadian Civil Liberties Association (CCLA), the Canadian Constitution Foundation, and other groups contested the government’s actions, arguing that they were unnecessary and violated constitutional rights. The recent court decision, hailed by the CCLA, establishes a significant precedent, emphasizing that the Emergencies Act should only be used as a last resort. Despite this, Finance Minister Chrystia Freeland has indicated the government’s intention to appeal the ruling.
Cryptocurrency emerged as a key funding source for the 2022 trucker protests, with the protesters reportedly receiving millions in digital assets. The decentralized nature of these assets makes it difficult to ascertain the exact amount raised. Initially, GoFundMe froze over $9 million in donations, prompting organizers to switch to Tallycoin, a Bitcoin-based crowdfunding platform. Here, the HonkHonk Hodl group raised over 22 Bitcoin, valued at approximately $925,000 at the time.
Additionally, the Christian crowdfunding site GiveSendGo became a significant donation avenue, amassing over $8 million for the truckers, including crypto contributions. However, Canadian authorities later froze bank accounts linked to these donations.
The government’s move to freeze digital assets was met with criticism from various quarters, including crypto executives like Kraken founder Jesse Powell, who condemned the action. This case highlights the complex interplay between government actions, legal boundaries, and the evolving role of cryptocurrencies in societal and political movements.
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