Brazil’s supreme court announced on Friday that it had instructed banks to transfer funds from accounts belonging to Starlink and X as a means to cover fines imposed on Elon Musk’s social network.
The court’s top justice, Alexandre de Moraes, alongside a panel of five other justices, determined that X had consistently breached Brazilian law by failing to appoint a legal representative within the country and by refusing to remove content or profiles deemed damaging to democratic institutions in Brazil.
Approximately 18.4 million Brazilian reals, equivalent to around $3.3 million, were transferred from the accounts. Elon Musk acquired X, formerly known as Twitter, in 2022. Starlink is the satellite internet service managed by SpaceX.
Following these transfers, the court ordered the release of frozen bank accounts and assets of X and Starlink, stating it was no longer necessary to maintain the freezes.
The suspension of X, initiated at the end of August, remains in effect. Musk and his enterprises have described de Moraes’ actions as “illegal” and lacking due process. X and SpaceX did not provide immediate comments in response to requests made on Friday.
Earlier this month, Brazilian news agency UOL reported that some accounts, which de Moraes had ordered Musk to suspend on X, belonged to individuals alleged to have threatened federal police officers involved in the investigation of former Brazilian President Jair Bolsonaro. Bolsonaro faces accusations of instigating the January 8 riots in Brazil and attempting a coup.
Musk supports Bolsonaro, partly because the former president authorized Starlink’s operations in the country. Since April, Musk has increased his criticisms and calls for de Moraes’ impeachment. On September 5, SpaceX’s Chief Operating Officer, Gwynne Shotwell, also criticized the Brazilian supreme court online.
She stated on social media, “@Alexandre, please stop harassing Starlink and let us keep serving the people of Brazil.”
Supporters of de Moraes and the supreme court have viewed the orders against X Corp. as a defense of Brazilian sovereignty.
Additionally, new data indicates Musk’s acquisition of Twitter is considered the worst deal for banks since the 2008 financial crisis.
