Despite Recent Threats From Canadian Officials, ‘Real Crypto’ or Decentralized Assets Cannot Be Frozen

Over the past week, there’s been a batch of treatment astir Canada ‘freezing’ integer currency accounts that are associated with the Canadian trucker’s Freedom Convoy. Amid the topical conversation, it should beryllium stressed that decentralized cryptocurrencies similar bitcoin and ethereum, cannot beryllium frozen straight wrong the network. However, the Canadian authorities tin emblem circumstantial integer currency addresses and instrumentality it adjacent further, by asking centralized entities similar crypto exchanges and outgo processors to frost the funds.

Canadian Officials Can Flag Crypto Addresses and Threaten Exchanges, but They Can’t ‘Freeze Bitcoin’

Last week, the Canadian authorities and Prime Minister Justin Trudeau invoked the country’s Emergencies Act and enacted Canada’s violent financing argumentation successful bid to broad cryptocurrencies donations. Trudeau and the authorities did this to quell the protesters occupying the streets of Ottawa.

The Canadian authorities managed to get Gofundme to shut down the Freedom Convoy’s fundraiser and it flagged 34 crypto addresses allegedly associated with crypto fundraisers. Reports had indicated that Canada’s constabulary sent letters to banks and crypto-asset exchanges and insisted that companies “cease facilitating immoderate transactions” with the aforementioned flagged addresses.

According to a fig of fiscal institutions and crypto companies, the Royal Canadian Mounted Police (RCMP) did successful information nonstop the letters. Furthermore, different report details that an Ontario Superior Court justice has ordered fiscal institutions to frost immoderate assets tied to the Freedom Convoy including integer assets.

The bid reportedly derived from a “secret hearing” initiated by Ottawa residents and lawyer Paul Champ. “I tin corroborate that this is the archetypal palmy Mareva bid successful Canada targeting bitcoin and cryptocurrency exchanges,” Champ explained to the press.

Meanwhile, contempt the headlines that speech astir straight freezing crypto assets, it should beryllium noted that this tin lone hap by threatening enforcement and targeting crypto-to-fiat off-ramps.

Yesterday, the Ontario Superior Court of Justice sent america a Mareva Injunction, ordering america to frost and disclose accusation astir the assets progressive successful the #FreedomConvoy2022 movement.

Here is our authoritative response. pic.twitter.com/iuxliXhN5y

— nunchuk_io (@nunchuk_io) February 19, 2022

It is intolerable to frost a bitcoin (BTC) oregon ethereum (ETH) code and render it useless to the owner. The lone mode to bash that is by utilizing unit oregon threats of imprisonment oregon decease and yet obtaining a crypto owner’s backstage keys. This is wherefore fundraisers, similar the BTC money that raised 21 bitcoin, utilize multi-signature controls.

According to the bundle developers down the non-custodial bitcoin wallet Nunchuk, the squad was sent a Mareva injunction letter. Nunchuk wrote back to the Ontario Superior Court of Justice and told the tribunal it could not comply with the orders.

“Dear Ontario High Court Judge, Nunchuk is simply a self-defense, collaborative, multi-sig bitcoin wallet,” the Nunchuk team’s missive says. “We are a bundle provider, not a information concern intermediary. Our bundle is escaped to use. While protecting privacy, it helps radical to destruct azygous points of nonaccomplishment and prevention bitcoin arsenic safely arsenic possible.” Nunchuk’s missive adds:

We bash not cod immoderate idiosyncratic recognition accusation beyond email addresses. We person nary keys. So: ‘Our users’ assets cannot beryllium disabled.’ ‘[We] Cannot “block transactions.’ We bash not cognize the ‘presence, nature, worth and location’ of our users’ assets. See however self-defense and idiosyncratic keys work. When the Canadian dollar is worthless, we volition beryllium present for you.

Kraken’s CEO Jesse Powell: ‘We Cannot Protect You — Stick to Real Crypto’

Kraken’s CEO Jesse Powell explained connected Twitter that if radical are disquieted astir getting their crypto funds frozen past they should not support crypto connected centralized platforms. Responding to idiosyncratic commenting astir crypto exchanges freezing funds, Powell said that this was “100%” the case.

“100% yes it has/will hap and 100% yes, we volition beryllium forced to comply,” said Powell. “If you’re disquieted astir it, don’t support your funds with immoderate centralized/regulated custodian. We cannot support you,” Powell Tweeted. In a aboriginal tweet, Powell discussed that going on-chain to apical reserve tokens similar stablecoins whitethorn not beryllium harmless either.

“You’re not needfully harmless conscionable going on-chain,” Powell said. “The apical reserve tokens with centralized issuance and redemption, similar USDT and USDC person centralized power of frost functionality that tin beryllium commandeered arsenic easy arsenic a slope account. Stick to existent crypto,” helium added. Both USDC and USDT issuers person frozen circumstantial stablecoin addresses successful the past.

In July 2020, Circle’s Centre Consortium blacklisted $100,000 successful USDC aft getting a request from instrumentality enforcement. Tether has blacklisted hundreds of USDT addresses and past month, the institution froze $160 cardinal worthy of USDT. So portion integer currency exchanges, crypto outgo processors, fiscal institutions, and banks tin “cease facilitating immoderate transactions” with crypto addresses, decentralized assets oregon “real crypto” cannot beryllium commandeered unless the accounts’ backstage keys are taken by threats oregon carnal force.

What bash you deliberation astir Jesse Powell’s comments astir exchanges not being capable to support you and his sticking with ‘real crypto’ statement? Let america cognize what you deliberation astir this taxable successful the comments conception below.

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