Canada's Federal Court has issued a ruling deeming an emergency law, granting the government authority to block money and cryptocurrency flows to support protesting truckers, as unreasonable and unconstitutional. On January 23, Judge Richard Mosley stated that there was no national emergency justifying the invocation of the Emergency Act and deemed the decision to do so unreasonable. The government, led by Prime Minister Justin Trudeau, initially used these laws in February 2022 to freeze funds, including cryptocurrency, donated to truckers protesting COVID-19 restrictions. A court had previously ruled this action unconstitutional.
The protests, known as the "Freedom Convoy," involved truckers using their vehicles to block streets in Ottawa, protesting COVID-19 vaccination requirements for truck drivers crossing the Canada-U.S. border. The government argued that it needed to invoke the Emergency Law, citing illegal occupations. However, the Canadian Civil Liberties Association (CCLA), the Canadian Constitution Foundation, and other groups challenged the government's use of emergency laws, deeming it unnecessary and unconstitutional. The recent court decision was viewed as setting an important precedent for future administrations, according to the CCLA.
Judge Mosley emphasized that the government should not invoke the Emergency Act simply for convenience or because it may be more effective than other available tools. He argued that it should be a last resort. In response to the ruling, Finance Minister Chrystia Freeland announced that the government would appeal the decision. Cryptocurrencies played a significant role in funding the 2022 Trucker protests, with protesters estimated to have received millions of dollars. However, the exact total remains unclear due to challenges in tracking decentralized digital assets. In response to frozen funds on platforms like GoFundMe, trucker protesters turned to cryptocurrency-friendly platforms like Tallycoin and GiveSendGo.
In February 2022, GoFundMe froze over $9 million in donations, leading organizers to Tallycoin, where the HonkHonk Hodl Group raised over 22 Bitcoins, worth about $925,000 at the time. The Christian crowdfunding site GiveSendGo also gained popularity, raising over $8 million for truckers, including an undisclosed amount in cryptocurrency. Canadian authorities later froze bank accounts linked to GiveSendGo donations, a move criticized by cryptocurrency executives, including Kraken founder Jesse Powell.
