The Brazilian State Treasury has seized more than $3 million from Elon Musk’s companies, Platform X and SpaceX. The Brazilian Supreme Court issued the ruling after Musk failed to comply with an order to block accounts on Platform X that supported former President Jair Bolsonaro.
Judge Alexandre de Moraes of the Brazilian Supreme Court played a central role in this decision. He ordered the transfer of approximately $3 million from accounts linked to the Starlink satellite internet system and Platform X, both owned by Musk. The Polish Press Agency reported on the case, citing official statements from the Supreme Court.
The court’s seizure broke down into two significant amounts. Judge de Moraes ordered the transfer of $1.3 million from Platform X, formerly known as Twitter. Similarly, the court moved nearly $2 million from Starlink, a satellite internet provider. These actions directed the funds into the Brazilian state treasury. After completing the full payment, the judge lifted the freeze on the accounts, signaling no further need for financial restrictions. “Immediate unfreezing of bank accounts and financial assets” was announced, ending this phase of the legal conflict.
Musk and De Moraes Clash Over Platform X Policies
This clash between Musk and Judge de Moraes escalated following Musk’s refusal to block accounts on Platform X. These accounts allegedly spread disinformation and were linked to supporters of ex-President Bolsonaro. Musk openly opposed the order, stating that he would not comply, sparking an ongoing legal battle.
Judge de Moraes took things a step further by ordering Platform X’s suspension in Brazil, set to begin on August 31. He justified this drastic measure by pointing to Musk’s refusal to appoint a legal representative in Brazil, a requirement under local laws. According to Platform X, de Moraes aims to gain leverage by demanding a local representative, potentially using the threat of arrest as a bargaining chip.
Legal Experts Question the Seizure
Not everyone agrees with Judge de Moraes’ actions. Legal experts have expressed skepticism about his decision to seize Starlink’s funds due to fines imposed on Platform X. Even though Musk owns both companies, they operate as separate legal entities. The Associated Press has pointed out that this distinction complicates the court’s decision. Many argue that targeting Starlink for Platform X’s alleged offenses overreaches the court’s authority.
Despite the controversy, de Moraes remained firm, enforcing compliance through financial penalties. The situation has not only impacted Musk’s companies but has also raised questions about the boundaries of law and order in the digital age.
Next Steps and Ongoing Dispute
While the immediate financial seizure has ended, the conflict continues. Judge de Moraes’ strict enforcement on social media platforms signals a new chapter in Brazil’s handling of misinformation and online activity. Musk’s defiance suggests he won’t back down easily, setting the stage for further legal wrangling.