### Brazil Takes Millions from Musk’s Starlink and X Over Legal Conflict
In a notable legal turn, Brazil’s Supreme Court has confiscated nearly $2 million from a Starlink bank account and an additional $1.3 million from X (previously known as Twitter) to recover fines levied against Elon Musk’s social media platform. These fines were imposed after X did not adhere to court orders to suspend accounts accused of spreading misinformation. The court’s ruling, revealed on Friday, represents the latest facet of an ongoing legal struggle between Musk’s enterprises and the Brazilian judiciary.
#### Background of the Conflict
The disagreement between Musk’s companies and Brazil’s Supreme Court dates back several months when X opted not to follow an order from Supreme Court Justice Alexandre de Moraes. The directive required X to suspend numerous accounts accused of spreading false information, especially regarding political events in Brazil. Musk publicly announced his intention to disregard the order, resulting in additional legal proceedings.
Justice de Moraes reacted by freezing the bank accounts associated with both Starlink and X, regarding them as part of the same *de facto* economic group due to Musk’s oversight of both firms. The court also mandated Brazilian Internet Service Providers (ISPs) to block access to X, effectively halting the platform in the country.
#### Confiscation of Funds and Account Unfreezing
The announcement from the Brazilian Supreme Court confirmed that two banks had transferred funds from Starlink and X to the Brazilian government. After the fines were settled, the court unfroze the companies’ accounts. Nonetheless, the suspension of X’s social media platform in Brazil continues to be enforced.
The fines originated from X’s noncompliance with the court’s requests to suspend accounts linked to misinformation, many of which were connected to supporters of former Brazilian President Jair Bolsonaro. Bolsonaro has been accused of inciting the January 8, 2023, assault on the Brazilian Congress following his defeat in the 2022 presidential election.
#### Starlink’s Initial Resistance and Later Compliance
At first, Starlink, Musk’s satellite internet venture, resisted the court’s order to block X from its broadband service. The company contended that the asset freeze was unwarranted and unconstitutional. However, Starlink swiftly reversed its position, consenting to block X while pursuing a legal challenge against the asset freeze.
Despite Starlink’s agreement, the Brazilian Supreme Court ruled that Starlink and X had missed the deadline to appeal the decision categorizing them as a single economic entity. This ruling enabled the court to treat both firms as one when imposing the fines.
#### Claims of Harassment
The legal confrontation has intensified into a heated exchange between Musk’s enterprises and the Brazilian judiciary. SpaceX President Gwynne Shotwell accused Justice de Moraes of “harassing Starlink” and contended that the company should not bear responsibility for the fines imposed on X. Starlink has consistently argued that the fines are unconstitutional and that it is being unfairly targeted.
X has likewise opposed the court’s measures, asserting that the platform is being penalized for rejecting what it describes as “illegal orders” aimed at censoring political adversaries of Justice de Moraes. X’s Global Government Affairs account stated that the platform is not violating Brazilian law but instead contesting what it perceives as judicial overreach.
“We are certainly not demanding that other nations adopt the same free speech laws as the United States,” X’s statement asserted. “The core issue at play is that Judge de Moraes insists we violate Brazil’s own laws. We simply will not comply.”
#### Political Context: Bolsonaro and Musk
The legal struggle carries wider political ramifications, particularly due to the involvement of former President Jair Bolsonaro. Bolsonaro, a right-wing populist, has openly supported Musk, especially after Musk’s choice to defy the court orders related to suspending accounts associated with Bolsonaro’s supporters. In April 2024, Bolsonaro and his backers commended Musk for opposing what they perceived as judicial overreach.
Bolsonaro has also faced legal scrutiny for his involvement in the January 8, 2023, attack on the Brazilian Congress, orchestrated by his supporters after his electoral loss. The event has drawn parallels to the January 6, 2021, storming of the U.S. Capitol by supporters of then-President Donald Trump.
Reports from Brazilian news sources indicate that some of the accounts Justice de Moraes ordered X to suspend were tied to individuals who had issued threats against federal police officers involved in investigations concerning Bolsonaro. This has intensified the political tension surrounding the legal dispute, as Bolsonaro’s supporters view the court’s actions as efforts to suppress dissent.
#### Conclusion
The ongoing legal clash between Elon Musk’s enterprises and Brazil’s Supreme Court underscores the difficulties of reconciling free speech, misinformation, and judicial authority in the modern digital landscape. While Musk’s companies
