Brazil has seized 18.35 million reais ($3.3 million USD) from the bank accounts of Elon Musk’s companies X and Starlink to pay fines imposed by the Supreme Court, escalating a legal battle that has led to the blackout of the social media platform in the country, according to Bloomberg.
The court ordered the withdrawal on Wednesday, and the accounts were subsequently unfrozen, according to a statement released Friday. The dispute centers on Justice Alexandre de Moraes’ crackdown on fake news and hate speech in Brazil.
Last month, Moraes ordered the ban of X, formerly known as Twitter, and blocked Starlink’s accounts to enforce penalties for Musk’s companies’ failure to comply with previous court orders.
“The blocking of the accounts occurred because the justice considered the joint liability between X Brasil Internet Ltda., Starlink Brazil Holding Ltda., and Starlink Brazil Internet Services Ltda. for payment of fines,” the court stated.
Now this is just crazy that a country can seize funds from the bank accounts of foreign corporations. Not a good look for Brazil, that’s for sure.
X remains banned in Brazil for failing to comply with orders to block certain user accounts and appoint a legal representative in the country. The judge’s actions have sparked international debate, with critics labeling them an attack on free speech and an example of state overreach.