The Federal Court of Canada has ruled that a law employed by the government to halt cryptocurrency donations and funds allocated to protesters was unconstitutional and unjustifiable. Justice Richard Mosley, who issued the verdict, argued that there was no national crisis significant enough to justify the implementation of the Emergencies Act.

The controversial Act was invoked for the first time by Prime Minister Justin Trudeau's administration in February 2022 in response to protests against COVID-19 mandates by truckers, known as the "Freedom Convoy," which involved street blockades. Cryptocurrencies played a significant role in financing these protests.

Several organizations, including the Canadian Civil Liberties Association (CCLA) and the Canadian Constitution Foundation, criticized the government's use of the emergency law to cut off funds, arguing it was unnecessary and violated the constitution. The CCLA welcomed the court's decision, seeing it as an important precedent for future administrations.

Justice Mosley emphasized that invoking the Emergencies Act should only be a last resort, not a matter of convenience or when alternative measures would suffice. Finance Minister Chrystia Freeland announced that the government intends to appeal the ruling.

Cryptocurrency played a crucial role in funding the 2022 trucker protests, although the total amount raised remains unclear, estimated to be in the millions. Platforms like GoFundMe froze over $9 million earmarked for the protests, prompting protesters to turn to Tallycoin, a Bitcoin-based crowdfunding platform, where they raised 22 Bitcoins worth $925,000 at the time. Additionally, the Christian crowdfunding site GiveSendGo received over $8 million, some of which was donated in cryptocurrency. However, Canadian officials also froze associated bank accounts. These actions led cryptocurrency figures like Jesse Powell, founder of Kraken, to criticize Canada's seizure of digital assets.