Unconstitutionality Declared in Canada’s Attempt to Halt Crypto Donations to Protesters, Says Judge

Crypto News- A landmark ruling from the Federal Court of Canada has declared the government’s emergency law, which enabled the freezing of funds and cryptocurrencies for protesting truckers, as unreasonable and unconstitutional.

Unconstitutionality Declared in Canada’s Attempt to Halt Crypto Donations to Protesters, Says Judge

In a decision on January 23, Justice Richard Mosley stated, “There was no national emergency justifying the invocation of the Emergencies Act, and the decision to do so was therefore unreasonable.”

Back in February 2022, Prime Minister Justin Trudeau’s administration utilized the law to halt funds, including cryptocurrencies, donated to truckers protesting COVID-19 restrictions. The court deemed this action as unconstitutional.

The protesters, part of the “Freedom Convoy,” employed trucks to block Ottawa’s streets, opposing the mandate for truck drivers crossing the Canada-U.S. border to be fully vaccinated against COVID-19.

Government officials argued that invoking the Emergencies Act was necessary due to the protests being an illegal occupation.

Various organizations, including the Canadian Civil Liberties Association (CCLA) and the Canadian Constitution Foundation, contested the government’s use of the emergency law, deeming it unnecessary and unconstitutional.

The CCLA hailed the decision as setting a “clear and critical precedent for every future government.”

Mosley emphasized that the Emergencies Act should not be invoked merely for convenience but as a tool of last resort. Despite the ruling, Finance Minister Chrystia Freeland announced the government’s intention to appeal.

Landmark Decision: Canadian Court Deems Government’s Crypto Fund Freeze Unconstitutional

Cryptocurrency played a pivotal role in funding the 2022 trucker protests, with millions of dollars received by protesters. However, tracking decentralized digital assets made the exact total unclear.

In response to fund freezes on platforms like GoFundMe, organizers turned to Tallycoin, a Bitcoin blockchain-based crowdfunding platform. The HonkHonk Hodl group raised over 22 Bitcoin, valued at approximately $925,000 at the time.

GiveSendGo, a Christian crowdfunding site, also garnered support, raising over $8 million for the truckers, including unspecified amounts in crypto. Nonetheless, Canadian authorities froze bank accounts linked to GiveSendGo donations.

During the controversy, crypto figures such as Kraken founder Jesse Powell criticized Canada’s freeze of digital assets.