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Brazil’s Supreme Court releases assets of Elon Musk’s Starlink and X


Brazil’s Supreme Court releases assets of Elon Musk’s Starlink and X

Elon Musk, CEO of Tesla Inc., at the U.S. Capitol in Washington, DC, USA, on Wednesday, July 24, 2024.

Samuel Corum | Bloomberg |

Brazil’s Supreme Court announced on Friday that it had ordered banks to transfer funds from Starlink and X accounts to pay the fines the court imposed on Elon Musk’s social network.

The court’s chief judge, Alexandre de Moraes, and a panel of five other judges concluded that X had repeatedly violated Brazilian law by refusing to appoint a legal representative in the country and by refusing to remove from its platform content or profiles that the court deemed harmful to Brazil’s democratic institutions.

The court ordered nearly 18.4 million Brazilian reals, or about $3.3 million, to be withdrawn from the accounts. Musk acquired X, then known as Twitter, in 2022. Starlink is SpaceX’s satellite internet service.

Following the transfers, the court ordered the release of X and Starlink’s frozen bank accounts and assets, as there was no longer any reason to keep them.

The Court suspended X at the end of August and the suspension remains in effect.

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

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

Bolsonaro is accused of inciting the January 8 riots in Brazil and attempting a coup there.

Musk is a supporter of Bolsonaro, partly because the former Brazilian president gave his company Starlink permission to operate in the country.

Since April, Musk has stepped up his insults and calls for impeachment against de Moraes. On September 5, his longtime colleague at the helm of SpaceX, COO Gwynne Shotwell, also attacked the Brazilian Supreme Court online.

She wrote: “@Alexandre please stop harassing Starlink and let’s continue to serve the people of Brazil.”

Supporters of de Moraes and the STF viewed the orders against X Corp. as an assertion of Brazilian sovereignty.

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