Judge Rules Canadian Government’s Freezing of Crypto Donations Unconstitutional

A federal judge has declared that the Canadian government’s use of emergency law to freeze assets, including cryptocurrency donations, of protesting truckers was unreasonable and unconstitutional. The Federal Court of Canada made the ruling on January 23, stating that there was no national emergency justifying the invocation of the Emergencies Act.

The government, under Prime Minister Justin Trudeau, had employed the law in February 2022 for the first time to halt funds, including cryptocurrencies, donated to truckers protesting COVID-19 restrictions. The protesters, part of the “Freedom Convoy,” used trucks to block streets in Ottawa, opposing a mandate requiring vaccinated truck drivers crossing the Canada-U.S. border.

The Emergencies Act was claimed to be necessary due to the protests being considered an illegal occupation. The Canadian Civil Liberties Association (CCLA), the Canadian Constitution Foundation, and other groups challenged the government’s use of the emergency law, arguing it was unnecessary and unconstitutional.

Following the court decision, the CCLA stated that it “sets a clear and critical precedent for every future government.” Justice Richard Mosley emphasized that the government should not invoke the Emergencies Act merely for convenience, stressing that it should be a tool of last resort.

Finance Minister Chrystia Freeland announced the government’s intention to appeal the ruling. Cryptocurrency played a significant role in funding the 2022 trucker protests, with funds estimated in the millions. However, the exact amount remains unclear due to challenges in tracking decentralized digital assets.

In February 2022, GoFundMe froze over $9 million in donations for the protests. Subsequently, organizers turned to Tallycoin, a crowdfunding platform on the Bitcoin blockchain, where the HonkHonk Hodl group raised over 22 Bitcoin, valued around $925,000 at the time. The Christian crowdfunding site GiveSendGo also gained popularity, raising over $8 million for the truckers, including unspecified amounts in crypto.

However, Canadian authorities later froze bank accounts connected to GiveSendGo donations. Crypto executives, including Kraken founder Jesse Powell, condemned Canada’s freeze of digital assets at the time.