Tech News

Brazil Supreme Court To Unfreeze Starlink And X Assets After Taking Fines

brazil

Brazil’s supreme court announced Friday that it ordered banks to transfer funds from Starlink and X accounts to pay fines the court levied against Elon Musk’s social network.

TakeAway Points:

  • The Supreme Court of Brazil declared on Friday that money from the bank accounts of Starlink and X had to be transferred in order to pay fines assessed against Elon Musk’s social media company.
  • After the transfers, the court declared that X and Starlink’s assets and bank accounts that had been confiscated were no longer necessary to retain.
  • Brazil has banned the use of X since the end of August.

Brazillian court unfreezes Elon Musk’s social medias assests

Brazil’s supreme court said Friday that it ordered funds to be moved from Starlink and X bank accounts to pay fines levied against Elon Musk’s social media venture.

The court’s top justice, Alexandre de Moraes, and a panel of five other justices, found that X had repeatedly violated Brazilian law when it refused to appoint a legal representative in the country, and when it refused to remove content or profiles from its platform that the court determined to be harmful towards democratic institutions in Brazil.

The court had nearly 18.4 million Brazilian reals, or approximately $3.3 million, transferred out of the accounts. Musk acquired X, then known as Twitter, in 2022. Starlink is the satellite internet service run by SpaceX.

Following the transfers, the court ordered that the frozen bank accounts and assets of X and Starlink be released, saying there was no longer any need to keep them.

The court suspended X at the end of August, and the suspension remains in place. 

Musk and his businesses have said they view the actions of de Moraes as “illegal” and his court’s orders as having been issued without due process. X and SpaceX did not immediately respond to requests for comment on Friday.

X to be recieve suspension in Brazil

Brazilian news agency UOL reported earlier this month that some of the accounts de Moraes ordered Musk to suspend at X belong to users who allegedly threatened federal police officers involved in a probe of former right-wing Brazilian President Jair Bolsonaro.

Bolsonaro has been accused of instigating Brazil’s Jan. 8 riots and of attempting to stage a coup there.

Musk is a proponent of Bolsonaro, in part because the former Brazilian president authorized his business Starlink to operate in the country.

Musk has been ramping up insults and calls to impeach de Moraes since April. On Sept. 5, his long-time collaborator at the helm of SpaceX, COO Gwynne Shotwell, also took shots at the Brazil Supreme Court online.

She wrote, “Alexandre, please stop harassing Starlink and let us keep serving the people of Brazil.”

Backers of de Moraes and the STF have seen the orders against X Corp. as an assertion of Brazilian sovereignty.

Starlink previous donation to Brazil

The CEO of X, formerly Twitter, said in a post on Thursday that Starlink will donate 1000 terminals to emergency responders in Rio Grande do Sul, Brazil. According to him, the region should make use of all terminals in the region for free until the region has recovered.

“Given the terrible flooding in Rio Grande do Sul, Starlink will donate 1000 terminals to emergency responders and make usage for all terminals in the region free until the region has recovered. I hope the best for the people of Brazil,” Elon said.

One of the users who commented about the post was Marcel van Hattem, a political scientist and journalist. He thanked Elon for the support, saying that the terminal will be put to good use.

Comments
To Top

Pin It on Pinterest

Share This