The Canadian government has decided to seize funds from Freedom Convoy protestor’s bank accounts without any court orders.
On Thursday, Canadian authorities issued an order that blacklisted 34 crypto wallets linked to the Freedom Convoy. The wallets contain approximately $1.4 million worth of cryptocurrency. According to statements from the Royal Canadian Mounted Police, any funds sent from the wallets to FINTRAC-regulated exchanges would be immediately frozen.
Kraken CEO Jesse Powell, the latest prominent figure in the crypto space has come out against the Canadian government’s decision. He said Kraken would be forced to comply with asset seizure requests and warned users to get their coins and cash off centralized exchanges.
“We will be forced to comply. If you’re worried about it, don’t keep your funds with any centralized/regulated custodian. We cannot protect you. Get your coins/cash out and only trade p2p [peer-to-peer].”
He also Tweeted: Due process is for plebs. Might makes right in Canada. If someone dissents, you just confiscate their wealth, revoke their licenses, exclude them from the financial system and kill their pets. No need to debate the law, policy or even rights when you have a monopoly on violence.
The next day Jesse Powell tweeted:
“It’s a great point. You’re not necessarily safe just going on-chain. The top reserve tokens with centralized issuance and redemption, like USDT and USDC have centralized control of freeze functionality that can be commandeered as easily as a bank account. Stick to real crypto”
Quote Tweet https://twitter.com/jespow/status/1494950357813776385
This bank account seizures from the Canadian government have highlighted the importance of decentralized monetary systems, both to those in the crypto space and onlookers from the general public. While Canadian authorities are able to block crypto transfers to centralized exchanges, peer-to-peer transactions of Bitcoin and Ethereum remain uncensorable.
This is real example why managing your own fund or assets on decentralised manner like hot wallet or cold wallet storage are vital for the independency of every individual or group. I’ve stated many times the importance of using DeFi and Non – Custodial platforms or wallets and their importance. Therefore education about crypto and using crypto in everyday life like DeFi are key to real democracy.