Trudeau Government’s Emergency Powers Challenged: Court Rules Crypto Freeze Unlawful
The Federal Court of Canada has declared the Trudeau government’s decision to freeze funds and cryptocurrencies during the ‘Freedom Convoy’ protests in 2022 as unconstitutional. The court ruled that invoking the Emergencies Act was unjustified, as there was no national emergency. This marked the first time the law was used to freeze financial assets, including cryptocurrencies.
Opponents, including the Canadian Civil Liberties Association (CCLA) and the Canadian Constitution Foundation, challenged the government’s decision, arguing that it was unnecessary and violated constitutional rights. The court’s ruling supports their position, stating that the government could have pursued alternative measures instead of resorting to the Emergencies Act, which was considered excessive.
Protests and Implications for Crypto Assets
The ‘Freedom Convoy’ protests involved truckers blocking streets in Ottawa to protest against Covid-19 vaccination mandates for truck drivers crossing the Canada-United States border. The government deemed the protests illegal, leading to the use of the Emergencies Act.
This ruling has implications for the use of cryptocurrency assets in political protests. Digital assets were used to fund the trucker protests, with estimates of millions received in cryptocurrencies.
In February 2022, Gofundme froze over $9 million in donations for the protests. Fundraising then shifted to platforms like Tallycoin and Givesendgo, where significant amounts of crypto were raised. Authorities later froze bank accounts linked to Givesendgo donations.
CCLA’s Response and Government’s Appeal
Following the court’s decision, the CCLA expressed satisfaction, stating that it stood up against the government’s use of the Emergencies Act and that the ruling sets an important precedent. However, Finance Minister Chrystia Freeland announced the government’s intention to appeal the ruling.
Hot Take: Court Strikes Down Crypto Freeze during “Freedom Convoy” Protests
In a landmark ruling, the Federal Court of Canada has declared the Trudeau government’s freeze of cryptocurrencies during the ‘Freedom Convoy’ protests as unconstitutional. The court rejected the government’s use of the Emergencies Act, emphasizing that it was an unjustified measure due to the lack of a national emergency. This decision has implications for the use of cryptocurrency assets in political demonstrations, questioning the government’s authority to freeze funds. The ruling is seen as a validation of the rights of protesters and may set a significant precedent for future cases involving the Emergencies Act. Although the government plans to appeal the decision, the court’s stance reinforces the need for alternative means to address such protests rather than resorting to extreme measures.
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