Crypto Donation Freeze During Protests Deemed Unlawful by Canadian Court

In a significant ruling by a Canadian federal judge on Tuesday, the government’s attempt to use emergency powers to freeze assets, including cryptocurrencies, during the 2022 trucker protests has been declared unconstitutional.

Justice Richard Mosley of the Federal Court of Canada asserted that there was no national emergency justifying the application of the Emergencies Act. He ruled that the decision was both unreasonable and unconstitutional, emphasizing that such extreme measures should only be used as a last resort when alternative solutions are exhausted.

Trudeau’s Move Faces Legal Setback

The Emergencies Act, activated by Prime Minister Justin Trudeau and his government in February 2022, aimed to freeze funds, including cryptocurrencies, connected to the trucker protests. The freeze specifically targeted assets donated to truckers who were protesting against COVID-19 restrictions, particularly vaccine mandates for those crossing the Canada-United States border.

The protesters, known as the Freedom Convoy, strategically used trucks to obstruct streets in Ottawa, symbolizing their resistance against vaccine mandates for truck drivers. Despite the government’s claim that the protests constituted an illegal occupation, the recent court ruling challenges the necessity of invoking the Emergencies Act, arguing that it should only be used when all other options are exhausted.

Facing Public Dissent

Various groups, including the Canadian Civil Liberties Association (CCLA) and the Canadian Constitution Foundation, expressed disapproval of the government’s use of emergency powers. Finance Minister Chrystia Freeland announced the government’s intention to appeal the decision, intensifying the legal battle surrounding the controversial move.

But What Role Does Crypto Play Here?

The trucker protests of 2022 saw significant reliance on cryptocurrency for financial support. Although the exact amount remains uncertain, millions of dollars were estimated to have been received by the protesters through various platforms.

During the protests, GoFundMe, a prominent fundraising platform, froze over $9 million in donations, leading organizers to shift to Tallycoin, a crowdfunding platform built on the Bitcoin blockchain. The HonkHonk Hodl group, in particular, raised over 22 Bitcoins, valued at approximately $1 million.

The impact runs deep!

The court’s decision not only rejects the government’s use of emergency powers but also highlights the role of cryptocurrencies in high-profile social movements.

Did the court make the right call? Share your thoughts.