Elon Musk’s satellite internet company, Starlink, has found itself embroiled in a legal standoff in Brazil. The conflict escalated when Brazil’s Supreme Court, under the directive of its top judge, Alexandre de Moraes, ordered the freezing of Starlink’s financial accounts. This decision comes as tensions rise over Musk’s social media platform, X, formerly known as Twitter.
In an announcement made on Thursday, Starlink confirmed receiving the order from Judge de Moraes, stating that the decision effectively “freezes Starlink’s finances and prevents Starlink from conducting financial transactions” within Brazil. The move is perceived as a direct response to the absence of legal representation for X in the country, a situation that has drawn the court’s ire.
According to a court source speaking to Reuters, the crux of the issue lies in the lack of an appointed legal representative for X in Brazil. This prompted de Moraes to issue an ultimatum on Wednesday, demanding that Musk assign a new legal representative within 24 hours. Failure to comply would result in the suspension of the social media platform in Brazil, Latin America’s largest nation.
Musk, who acquired Twitter in October 2022 and later rebranded it as X, has openly criticized the court’s actions. He accused the Brazilian judiciary of punishing the platform for its stance against censorship. Musk took to X to express his discontent, arguing that the court’s decision is unfairly targeting other stakeholders and the Brazilian populace.
“SpaceX and X are two completely different companies with different shareholders. I own about 40% of SpaceX, so this [is an] absolutely illegal action by the dictator,”
Musk wrote on his social media platform, referencing Judge de Moraes.
Starlink also released a statement via X, condemning the court’s order as unjust. The company claimed that the directive was “issued in secret and without affording Starlink any of the due process of law guaranteed” by Brazil’s constitution.
“This order is based on an unfounded determination that Starlink should be responsible for the fines levied — unconstitutionally — against X,”
Starlink asserted.
Earlier in the month, X announced its intention to shut down its operations in Brazil and dismiss its staff, attributing the decision to what it described as “censorship orders” from Judge de Moraes. Despite this, the platform remains accessible to Brazilian users for the time being.
The tension between X and Brazil’s judiciary has been mounting over the past year. Judge de Moraes previously ordered the suspension of several X accounts allegedly linked to so-called “digital militias.” These groups, reportedly connected to former president Jair Bolsonaro, are accused of disseminating defamatory content and threats aimed at Supreme Court members.
As the deadline set by de Moraes approached, X predicted that the judge would soon order the platform’s shutdown. The company has steadfastly refused to comply with the court’s orders, denouncing them as an unlawful attempt to suppress political opposition.
