Brazil’s top court has decided to lift the freeze on the bank accounts of Starlink and X Corp, both companies controlled by Elon Musk, after they transferred $3.31 million in fines owed to Brazil. The freeze was initially imposed by Brazil Supreme Court Justice Alexandre de Moraes as a way to pressure Starlink to cover the fines imposed on X. However, with the full payment made, de Moraes ordered the immediate unblocking of the bank accounts, financial assets, motor vehicles, and real estate of both companies.
The fines on X were a result of ongoing investigations and the platform’s failure to remove content despite being ordered by the court to do so. X had also withdrawn its legal representatives in Brazil, leading to the suspension of its operations in the country. This public feud between Musk and de Moraes escalated when the court demanded the censorship of popular Brazilian accounts, which X’s global government affairs team denounced as unlawful attempts at censorship.
Starlink, in response to the account freezes, argued that de Moraes’s decision violated due process and the Brazilian Constitution. They believed the decision was issued in secret and without affording Starlink any of the legal protections guaranteed by the constitution. X’s global government affairs account shared a copy of a letter from the Brazil Supreme Court, highlighting the demands for censorship and personal account information of users, which X claimed affected not only Brazilians but also residents of the United States and Argentina.
De Moraes has accused Musk of disrespecting Brazil’s sovereignty and judiciary by resisting the orders to shut down accounts. Musk, in turn, has been highly critical of de Moraes and his decision to block X in Brazil. He shared a post from billionaire hedge fund manager Bill Ackman, who compared de Moraes’s actions to strong-arm tactics in communist-ruled China and warned that this could make Brazil an “uninvestable” market. Musk agreed with Ackman’s assessment, calling the X ban “illegal.”
In the midst of the feud, de Moraes ordered internet service providers and app stores, including Starlink, to block X from their platforms. Initially resisting the order, Starlink eventually agreed to comply but vowed to explore all legal avenues to allow X to continue operating in Brazil.
