A Brazilian Supreme Court justice, Alexandre de Moraes, seized around $3 million from bank accounts of Elon Musk‘s companies, X (formerly Twitter) and Starlink on Friday. This action was taken to cover fines X owes in Brazil. Initially, both companies’ accounts were frozen, but they have now been unfrozen. There was some controversy over de Moraes’ decision to use Starlink’s funds to cover X’s fines, given that Starlink and X are separate entities even though Musk controls both.
The Supreme Court announced that $1.3 million was transferred from X’s account and $2 million from Starlink’s account. The details of de Moraes’ ruling have not yet been fully disclosed. The banks holding the accounts were notified on Thursday that they needed to comply with the court’s decision. “After the payment of the full amount that was owed, the justice (de Moraes) considered there was no need to keep the bank accounts frozen and ordered the immediate unfreezing of bank accounts/financial assets,” the Brazilian Supreme Court said.
Backlash To X In Brazil
The social media platform has faced backlash in Brazil after refusing to take down content flagged as illegal by Supreme Court Justice Alexandre de Moraes. He is also the same justice who suspended X in Brazil because Elon Musk didn’t appoint a legal representative for the company there, which is required by law. X argues that this requirement is a way for local authorities to exert pressure by having someone they can arrest. Many legal experts, including some who support de Moraes’ decisions regarding X, disagree with using Starlink’s funds to cover X’s fines.
“Starlink is a different company. Belonging to the same economic group doesn’t mean it is also responsible for a debt it did not take part of. It didn’t even have a chance to defend itself,” Lênio Streck, a renowned Brazilian jurist, said in his social media channels. “What could Starlink have done to avoid what other companies did?” Luís Henrique Machado, a law professor at the IDP university in the capital, Brasilia, said de Moraes’ decision is consistent.
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Sanctions Put On Elon Musk’s X
“The social media company was sanctioned for not removing content after an order of the Supreme Court amid ongoing investigations. It is totally understandable that the judge requests that the fines be paid,” Machado said. “The ruling is legitimate in imposing the transfer of the amounts in compulsorily fashion.”
Since last year, X has been in conflict with Justice Alexandre de Moraes over its refusal to block certain users, particularly far-right activists accused of threatening Brazilian democracy. Elon Musk has criticized de Moraes, calling him a dictator and autocrat due to his rulings impacting Musk’s companies in Brazil.
On August 31, X was banned nationwide in Brazil, with de Moraes imposing a $9,000 daily fine for anyone using a VPN to bypass the ban. Following this, many Brazilian X users migrated to Threads and Bluesky.
On Saturday, tens of thousands of supporters of former President Jair Bolsonaro gathered in Sao Paulo for an Independence Day rally, viewing the X ban as evidence of political persecution. Despite having 22 million users in Brazil, X’s user base is much smaller compared to Instagram, Facebook, and TikTok.
