The Brazilian Supreme Court has issued an order for banks to transfer funds from Elon Musk’s social network, X, and Starlink accounts to pay fines for violating Brazilian law. The court found that X had refused to appoint a legal representative in the country and had failed to remove harmful content related to democratic institutions in Brazil. Approximately $3.3 million was transferred from the accounts, leading to the release of frozen bank accounts and assets of X and Starlink. The court had previously suspended X at the end of August, a move that Musk and his businesses have referred to as “illegal” and lacking due process.
The court’s actions against X includes orders to suspend accounts linked to users threatening federal police officers involved in an investigation of former Brazilian President Jair Bolsonaro. Bolsonaro has faced accusations of inciting riots and attempting a coup in Brazil. Musk, a supporter of Bolsonaro, has been engaged in a public exchange of insults and calls for impeachment against Alexandre de Moraes, the top justice of the Brazilian Supreme Court who issued the orders against X. Musk’s SpaceX COO, Gwynne Shotwell, also joined in the online criticism against de Moraes, requesting the harassment of Starlink to cease.
The dispute between Musk’s businesses and the Brazilian Supreme Court reflects a clash over Brazilian sovereignty and legal jurisdiction. The court’s actions have been seen as an attempt to assert national authority over foreign-owned entities like X Corp. and Starlink operating within Brazil. Musk’s support for Bolsonaro, who allowed Starlink to operate in the country, has further complicated the situation. The ongoing conflict has escalated with Musk and his associates openly challenging the court’s orders and seeking to continue their operations in Brazil.
Despite the court’s actions and fines levied against X, Musk and his businesses have refused to comply with the orders, citing legal objections and procedural irregularities. X and SpaceX have not responded to requests for comment on the matter, indicating their defiance of the court’s directives. The financial penalties imposed by the Brazilian Supreme Court are part of a broader effort to hold foreign-owned tech companies accountable for violating local laws and regulations. The outcome of this legal battle between Musk’s social network and the Brazilian authorities remains uncertain as both sides continue to escalate tensions.
