Canadian court declares 2022 freeze on crypto for protesting truckers unconstitutional
The Emergencies Act, passed by the Canadian federal court, has declared Prime Minister Justin Trudeau’s use of emergency legislation to suppress the “freedom convoy” protests in 2022 as “unreasonable.” The court ruled that Trudeau’s decision to freeze crypto assets used by the truck convoy protesters was an unjustifiable violation of civil rights. While the court found the freezing of bank accounts and crypto for protest participants to be unjustified, it rejected claims of other rights violations. Justice Richard Mosley emphasized that the Emergencies Act should only be used as a last resort, not simply because it is convenient or more effective than other available tools.
In 2022, protests erupted in Canada in response to strict COVID-19 protocols. The government used the National Emergency Act to address what it considered “rogue” protesters, granting it the power to bypass financial protocols. This included the authority to access and freeze bank accounts without a court order. In response, some Canadians turned to cryptocurrencies. However, the Ontario Provincial Police and Royal Canadian Mounted Police instructed regulated financial institutions to cease any transactions from 34 crypto wallets linked to funding the trucker-led protests, which contained numerous Bitcoin (BTC) and other altcoins.
The impact of the court’s ruling on those affected by the Emergencies Act and their ability to sue the government for damages remains uncertain, as the government intends to appeal the decision.