The cryptocurrency wallet service tweeted that it had been ordered to divulge information and freeze assets, but that it was unable to comply with the court order “by design.”
Nunchuk is a cryptocurrency wallet provider. A Canadian court it with a Mareva Injunction. They order it to provide user information and seize any assets associated to the Freedom Convoy 2022 protests, among other intermediaries and persons.
People never uses the injunction against bitcoin.
On February 19th, the company tweeted that it had rejected the court’s ruling. It was because it was unable to comply with it and that the only customer data it kept was email addresses.
They stated that they are not in possession of any keys. As a result, they are unable to freeze the assets of their users. It is impossible for them to stop them from transporting. They have no awareness of their users’ assets’ existence, type, value, or whereabouts. This is on purpose.
In an email to the court, Nunchuk said that it was a software supplier for its users rather than a financial intermediary. They said that it had no influence over their assets.
They stated that if the Canadian currency loses its value, they will be here to assist them as well.
Separately, the firm announces to prioritize a non-email login option on its agenda.
In an effort to crack down on the Freedom Convoy 2022 activists, the Canadian government broadened its anti-money laundering (AML) legislation to include bitcoin and crowdfunding last week.
Initially, platforms funds the movement through crowdfunding. However, as crowdfunding became difficult, it is funded through crypto donations.
After a group of Ottawa residents won a private class action suit to freeze crypto wallets backing the Freedom Convoy 2022 movement, a Canadian court issued the Mareva Injunction.
Despite seizing the bank accounts of the organization’s acknowledged leaders, the government’s efforts to crack down on crypto transactions funding the movement have been ineffective so far.
The Government’s Technological Apathy
States are attempting to combat the use of cryptocurrency in financial crimes. There is, however, an obvious mismatch between these administrations and new technologies such as blockchain.
Individuals can now have unparalleled financial control and trade directly with one another thanks to cryptocurrency. In addition, as long as they keep the coins in a private wallet. They are entirely secure and only the owner has access to them.
Because the Canadian court lacks a thorough understanding of how cryptocurrency wallets work. It issues an order that’s doom to fail. Many countries are attempting to regulate crypto activities without realizing that the technology is inherently resistant to centralization.
El Salvador is considering making bitcoin its official currency. Other nations, like as China and Iran, have outright restrictions on all cryptocurrency activities.
Meanwhile, several governments are preparing to regulate cryptocurrencies or have already started doing so.
This week, US President Joe Biden sets to sign an executive order. This is about directing several government organizations to initiate comprehensive research into the threats. For the reason that virtual currencies pose to financial stability. They’ll also have to come up with a regulatory structure.