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Brazil Unfreezes Starlink and X Finances After Legal Clash with Musk, But Ban Remains

 September 17, 2024

Brazil's Supreme Court, led by Justice Alexandre de Moraes, unfroze the bank accounts of Elon Musk’s Starlink and social media platform X on Friday.

This move comes after the court imposed fines totaling over $3 million, and while the Musk-tied financial accounts have been restored, the ban on X's ability to function as a social media platform within Brazil remains in effect, as Fox Business reports.

The court’s decision to unfreeze accounts follows a series of legal battles between Musk’s companies and Brazil’s judicial system.

In late August, the Supreme Court temporarily banned X due to Musk’s failure to appoint a legal representative in the country.

This legal representative was deemed essential for X to comply with ongoing investigations into digital militias and the alleged spread of misinformation and hate online.

Failure to Comply Leads to Ongoing Ban On X

The legal issues surrounding X and Starlink started earlier this year when Musk’s platform was implicated in several probes regarding social media platforms. These investigations are tied to concerns over the spread of misinformation by groups dubbed "digital militias." Brazilian authorities require all social media platforms to appoint legal representatives who can be held accountable in such cases.

When Musk failed to meet the court's deadline to appoint this representative, Justice de Moraes upheld a ban on X within Brazil. As a result, the platform has been inaccessible in the country since late August, and fines started accumulating for non-compliance. Last Friday, the court maintained that X would continue to be banned until Musk appoints a legal representative.

Musk’s Reaction and Public Criticism of Brazil's Judiciary

Musk has been vocal in his criticism of Brazil's top court and specifically Justice Alexandre de Moraes. The tech billionaire has used X, the very platform embroiled in this legal battle, to share his views on the situation. He has referred to de Moraes as a "dictator" and called for his impeachment, accusing him of violating his oath of office.

“It’s only a matter of time before this criminal is behind bars,” Musk wrote in a series of posts, even going so far as to label the justice as “de Voldemort,” a reference to the fictional villain in the Harry Potter series. He has also defended X’s role in Brazil, stating, “X is the most used news source in Brazil. It is what the people want.”

Starlink Also Caught in Legal Crossfire

In addition to X, Musk’s satellite internet company, Starlink, has faced legal challenges in Brazil. Although Musk owns a 42% stake in Starlink’s parent company, SpaceX, both entities have been entangled in the broader dispute with the Brazilian judiciary. Like X, Starlink’s bank accounts were also frozen following the court's ruling.

Despite the unfreezing of these accounts, the legal demands placed on Musk's companies remain unresolved. The court has emphasized that compliance with all court orders, including the payment of fines and the appointment of legal representatives, is necessary for the situation to be resolved fully.

Legal Roadblocks and Unpaid Fines

Justice de Moraes has made it clear that the legal freeze on X and Starlink was not solely about the money owed. The case goes deeper, touching on broader issues of compliance with Brazil's legal framework for social media platforms. The fines, exceeding $3 million, were imposed after Musk's failure to address the demands of the court.

Although the fines have been paid, the suspension of X will continue until a legal representative is officially appointed to handle the ongoing legal matters in Brazil. The justice has been firm in his demands, insisting on full compliance with the court's rulings.

Future Of X And Starlink In Brazil Remains Uncertain

The unfreezing of Starlink and X’s accounts marks a significant development in this ongoing legal battle, but it is far from the end. The Brazilian court has placed substantial pressure on Musk’s companies, demanding adherence to its laws and regulations. Musk’s public defiance and criticism of the judiciary could further complicate matters in the weeks and months ahead.

Whether or not Musk complies with the court’s orders remains to be seen. Until then, Brazilian users of X will continue to experience the platform’s absence, as the legal stalemate persists. For Starlink, the financial unfreezing may offer some relief, but the company is still subject to Brazilian law.

Conclusion

Brazil’s Supreme Court has unfrozen the bank accounts of Elon Musk's companies, Starlink and X, following a legal dispute that resulted in fines exceeding $3 million.

Despite this financial unfreezing, X remains banned in Brazil until Musk appoints a legal representative to address the court’s demands.

Musk has openly criticized the court's decisions, calling Justice Alexandre de Moraes a dictator and challenging the judiciary's actions. With Starlink also implicated, the future of Musk’s companies in Brazil remains in question as the legal battle continues.