Brazil’s Supreme Court recently unfroze the bank accounts of two major companies, Starlink and X, after the firms transferred over USD 3 million to settle outstanding fines. Justice Alexandre de Moraes, who handled the case, ordered the immediate release of their financial assets once the required payments were made.
The situation stemmed from previous legal battles involving both companies, which are owned by billionaire Elon Musk. The court initially froze their bank accounts due to the firms’ failure to comply with earlier rulings. X, a social media platform, had been penalised for failing to remove certain accounts accused of spreading misinformation, a legal requirement in Brazil. In addition, Starlink, Musk’s satellite internet company, was caught up in the same legal struggle as they both shared leadership.
According to a statement from the Brazilian Supreme Court, approximately 1.3 million USD was taken from X’s account, and 1.9 million USD from Starlink, summing up the total of 7.2 million reais from X and 11 million reais from Starlink.
Once the full amount owed was transferred, Justice de Moraes decided that there was no further need to freeze their financial assets, leading to the unfreezing of the accounts.
The background to this legal dispute goes beyond financial matters. Elon Musk became involved in a confrontation with Brazil’s justice system after his refusal to remove certain accounts from X that were believed to spread false information.
This defiance led to Justice de Moraes making the controversial decision to ban X in Brazil temporarily. Musk criticised the decision harshly, referring to de Moraes as an “evil dictator” and aligning himself with political figures who have also been entangled in disputes with the court.
The court’s actions were not only a response to misinformation concerns but also tied to X’s failure to meet legal obligations within Brazil. The platform was required to appoint legal representation within the country, a step that X failed to follow, further escalating tensions with the court.
Musk’s criticisms of Brazil’s justice system were not limited to his companies’ legal issues. He openly expressed support for those who had backed Jair Bolsonaro, the former right-wing president of Brazil, who lost the October 2022 election.
Bolsonaro’s defeat led to unrest among his supporters, who stormed the Brazilian legislature in January 2023, demanding a military coup to overturn the election results.
Since then, Bolsonaro’s political career has faced significant consequences. He has been barred from holding public office until 2030, a decision linked to the ongoing investigations into his post-election behaviour.
The parallels between Bolsonaro’s situation and Musk’s conflict with Brazil’s judiciary were evident, as both individuals found themselves clashing with Justice de Moraes over issues of misinformation and legal compliance.
For Musk, the financial penalties and legal disputes in Brazil were just another chapter in his complex global business operations. His companies, particularly Starlink, continue to play crucial roles in providing internet connectivity worldwide, while X remains a central platform for global communications.
Despite the controversies, the settlement of the fines and the unfreezing of their accounts signal a resolution, at least for now, in this legal standoff with Brazil’s courts.
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