Brazil has confiscated approximately $2 million from a Starlink bank account and an additional $1.3 million from X in an effort to enforce fines imposed on Elon Musk’s social network, according to the country’s Supreme Court. Judge Alexandre de Moraes had previously frozen the accounts of both companies, classifying them as the same de facto economic group due to their control by Musk. The frozen bank accounts were released after the funds were transferred, as detailed in the court’s announcement.
Two banks executed the transfer orders, and the move resulted in the immediate unfreezing of the financial assets, as reported by The Associated Press. However, the suspension on X’s social platform operations in Brazil remains intact. This dispute traces back to Musk’s earlier refusal to comply with de Moraes’ order to suspend numerous accounts accused of disseminating disinformation. Following Musk’s defiance, the judge mandated Internet service providers to block access to X, leading to the closure of X’s office in Brazil and subsequent non-payment of fines.
Starlink initially declared its intention to defy the order to block X on its broadband service until its assets were unfrozen. The company later reversed its stance but confirmed it would still contest the asset freeze in court. The Supreme Court noted that both Starlink and X missed a deadline to challenge the ruling that they are part of the same economic group.
In response, Starlink criticized the asset freeze as an “unfounded determination” holding it accountable for fines against X, which SpaceX President Gwynne Shotwell characterized as “harassment” by Judge de Moraes. Elon Musk’s X platform similarly argued it was targeted unfairly for resisting illegal censorship orders and emphasized it was not violating Brazilian law.
The case is further complicated by political undertones, as some accounts de Moraes ordered suspended were associated with individuals who allegedly threatened investigators probing former President Jair Bolsonaro. Bolsonaro was accused of instigating the January 2023 attack on the Brazilian Congress following his election defeat. Supporters of Bolsonaro praised Musk for his decision to defy orders to block these accounts.