Federal judge ¨freezing crypto assets by Canadian Govt was unconstitutional¨

Canada’s blocking protesters’ crypto donations was unconstitutional

In a significant legal development, the Federal Court of Canada has declared an emergency law, allowing the government to cut off funds and cryptocurrencies to protesting truckers, as both unreasonable and unconstitutional. The ruling, handed down by Justice Richard Mosley on Jan. 23, emphasized the absence of a national emergency justifying the application of the Emergencies Act. This decision follows the government's utilization of the law in February 2022 to freeze funds, including crypto donations, to truckers protesting COVID-19 restrictions. The court's finding deems the government's actions unconstitutional, setting a precedent for future instances involving the Emergencies Act.


The Federal Court of Canada has deemed an emergency law, empowering the government to halt funds and crypto to protesting truckers, as unreasonable and unconstitutional. Justice Richard Mosley, in a Jan. 23 ruling, asserted that there was no national emergency justifying the invocation of the Emergencies Act. In February 2022, Prime Minister Justin Trudeau's government utilized the law to freeze funds, including cryptocurrencies, donated to truckers protesting COVID-19 restrictions. The court found this action unconstitutional. The "Freedom Convoy" protesters, opposing a mandate for vaccinated truck drivers, faced the government's emergency powers, which the court now deems an unjustified measure.

The decision is considered a significant precedent by the Canadian Civil Liberties Association, emphasizing the Emergencies Act should be a tool of last resort. Finance Minister Chrystia Freeland has announced the government's intention to appeal the ruling.


Cryptocurrencies important role in funding the 2022 protests


Cryptocurrency played a pivotal role in funding the 2022 trucker protests, with decentralized digital assets complicating the tracking of exact amounts received. GoFundMe froze over $9 million in donations, prompting organizers to shift to Tallycoin, a Bitcoin blockchain-based crowdfunding platform. The HonkHonk Hodl group raised over 22 Bitcoin, worth approximately $925,000 at that time.


The Christian crowdfunding site GiveSendGo also raised over $8 million for the truckers, including unspecified crypto amounts. Despite crypto executives, such as Kraken founder Jesse Powell, condemning the freeze of digital assets, the Canadian authorities took actions like freezing bank accounts linked to GiveSendGo donations.

Good for freedom, Good for Cryptocurrencies

The Federal Court of Canada's unequivocal ruling against the emergency law's application to curb funds and cryptocurrencies in the context of protesting truckers marks a significant victory for individual freedom and civil liberties in Canada. By deeming the government's actions as both unreasonable and unconstitutional, the court has set a powerful precedent, reinforcing the importance of upholding fundamental rights even in times of societal challenges.


This decision serves as a robust safeguard against potential misuse of emergency powers, signaling that such measures should only be invoked as a last resort. In the realm of cryptocurrency, where decentralized assets often blur regulatory lines, the ruling underscores the necessity for proportionate and constitutionally sound actions by authorities. The decision resonates beyond the specific case, influencing future legal considerations and discussions surrounding digital assets in Canada.

Legal clarity surrounding cryptocurrencies in government emergencies

This clarity not only ensures a more balanced approach to emergency powers but also fosters a conducive environment for the continued growth and acceptance of cryptocurrencies, emphasizing the importance of preserving individual liberties even amid evolving global challenges. Ultimately, the court's stance contributes to a more resilient and freedom-centric landscape for both the crypto space and individual rights in Canada.

Your thoughts on this new development ? This legal case has set a predecent for future cases in the freezing of crypto ? Will the Canadian govt win the appeal against this ruling? Leave a comment and share your views with the bulb community.

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