A Federal Court judge in Canada has ruled that the government’s use of emergency powers to freeze funds donated to the “Freedom Convoy” trucker protests last winter was unconstitutional. The decision states there was no justification for invoking the Emergencies Act.
In February 2022, Prime Minister Justin Trudeau’s government employed the never-before-used emergency legislation to cut off financial support to protesters occupying Ottawa streets in opposition to COVID-19 restrictions. This included freezing millions donated in fiat and cryptocurrencies.
Civil liberties groups challenged the emergency order, arguing it violated rights by unlawfully targeting donors without due process. Justice Richard Mosley sided with these arguments, stating the act failed legal tests and should only apply when no other laws can address a major crisis threatening national security.
The ruling underscores the major role crypto played in funding the protests after mainstream crowdfunding platforms like GoFundMe blocked over $9 million in donations. Drivers subsequently leveraged Bitcoin and other digital tokens, making it harder for authorities to halt financial flows.
Trudeau maintains the emergency action responded to an illegal occupation, while critics call it government overreach. The decision now sets a key precedent should future leaders try invoking similar powers.
However, the court did not uphold the civil liberties groups’ request to invalidate the Ontario provincial government’s similar emergency order. An appeal of the federal decision is also likely, prolonging debates over limiting civil protests and the growth of cryptocurrency.
The trucker convoy helped showcase both the fundraising limits of centralized tech platforms and the disruptive potential of decentralized digital assets. As crypto adoption spreads, authorities may face added challenges curtailing financial support for causes operating outside the traditional financial system.
