SAO PAULO — Brazilian Supreme Court Justice Alexandre de Moraes ordered on Friday the seizure of approximately $3 million from the bank accounts of social media platform X and satellite-based internet service provider Starlink, both controlled by tech billionaire Elon Musk.
The seizure was intended to collect funds equivalent to fines owed by X. Following the decision, the accounts of both companies were unfrozen.
Justice de Moraes’s ruling involved transferring more than 7.2 million Brazilian reais ($1.3 million) from X’s account and nearly 11 million Brazilian reais ($2 million) from Starlink’s account. The decision was made on Wednesday, though the specifics of the ruling are not yet public.
The Supreme Court indicated that the banks holding the accounts were notified on Thursday of their compliance with the court’s order. “After the full payment was made, Justice de Moraes deemed there was no need to keep the accounts frozen and ordered their immediate unfreezing,” the court said.
The move comes amid ongoing tensions between Brazil and X, which has faced criticism for not removing content flagged as illegal by the Supreme Court. Justice de Moraes previously suspended X’s operations in Brazil due to Musk’s failure to appoint a legal representative in the country, a legal requirement. X contends that de Moraes’s demand for an in-country representative is an attempt to exert undue leverage.
Legal experts are divided on the decision to use Starlink’s funds to cover X’s fines. Some, including renowned Brazilian jurist Lênio Streck, argue that charging Starlink for X’s debts is unjust, as Starlink is a separate entity and was not given a chance to defend itself. “Belonging to the same economic group doesn’t mean it is also responsible for a debt it did not take part of,” Streck said.
Conversely, Luís Henrique Machado, a law professor at IDP University in Brasília, supports the decision, stating that it is consistent with the Supreme Court’s actions against X for failing to comply with content removal orders. “It is totally understandable that the judge requests that the fines be paid,” Machado said.
Since last year, X has been at odds with de Moraes over its reluctance to block users, including far-right activists accused of undermining Brazilian democracy. Musk has criticized de Moraes as a dictator for his rulings impacting his companies in Brazil.
On August 31, Musk’s platform was banned nationwide, and a $9,000 daily fine was set for users bypassing the suspension with a virtual private network (VPN). Many Brazilian users of X have migrated to alternative platforms such as Threads and Bluesky.
On Saturday, tens of thousands of supporters of former President Jair Bolsonaro rallied in São Paulo, viewing the ban on X as political persecution.
X had 22 million users in Brazil as of Digital 2024: Brazil estimates, compared to around one-sixth of Instagram’s user base and about one-fifth of Facebook or TikTok’s. Since its launch in Brazil in January 2022, Starlink has captured a 0.5 percent share of the internet market, according to Brazil’s telecommunications agency Anatel. — Agencies
