Brazilian authorities seized USD 3.3 million from Elon Musk’s companies, X and Starlink, over unpaid fines in an ongoing dispute, according to Euro News.
The Brazilian Supreme Court, led by Justice Alexandre de Moraes, took the funds to cover penalties owed by X for not removing illegal content.
Justice de Moraes ordered the seizure of 7.2 million Brazilian reais from X and 11 million reais from Starlink accounts last Wednesday.
Despite Musk owning both companies, legal experts argue that Starlink is separate and shouldn’t be held accountable for X’s actions.
Renowned Brazilian jurist Lênio Streck questioned the decision to freeze Starlink’s account, stating it had no involvement in X’s violations.
The fines stem from X’s failure to comply with orders to remove posts related to far-right activists in Brazil, facing Supreme Court investigations.
Legal analyst Luís Henrique Machado supported de Moraes’ decision, calling it legitimate and essential to enforce the court’s ruling.
Musk criticized Justice de Moraes, calling him a dictator due to rulings against X, including a temporary nationwide ban in August.
The ban forced Brazilian X users to migrate to other platforms like Threads and Bluesky, as fines were imposed for VPN usage.
X, which had 22 million users in Brazil, now holds a much smaller presence compared to platforms like Instagram, Facebook, and TikTok.
Starlink, launched in Brazil in 2022, has captured a small share of the internet market, with 0.5% according to telecommunications agency Anatel.
Brazil’s Supreme Court confirmed that the companies’ accounts were unfrozen after the fines were fully collected, allowing operations to continue.