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Brazilian Supreme Court Lifts Freeze on Starlink Accounts, Transfers $3.3 Million to National Treasury

By  |  September 15, 2024

Brazil’s Supreme Court has lifted the freeze on Starlink’s bank accounts, following a decision by Justice Alexandre de Moraes to transfer 18.35 million reais (approximately $3.3 million) from the accounts to the national treasury. This move was announced in a court statement released on Friday.

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    According to Reuters, the decision to unfreeze Starlink’s accounts was based on the fact that the transferred amount matched the total fines owed by X (formerly Twitter) to Brazil. The fines had been levied amid ongoing disputes between the platform’s billionaire owner Elon Musk and Justice Moraes.

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    Per Reuters, the legal entanglement began when Moraes imposed restrictions on X in Brazil, including blocking access to the social media platform in the country. This measure was taken after X allegedly failed to comply with orders to block accounts accused of spreading misinformation and hate speech, which Moraes deemed a threat to democratic processes.

    Read more: FCC Chair Calls for More Competition to SpaceX’s Starlink Network

    The situation escalated when X also did not comply with Brazilian laws requiring the designation of a local legal representative and missed a compliance deadline. This led Moraes to freeze Starlink’s accounts as a potential means to cover the fines owed by X.

    Despite the lifting of the account freezes, the Supreme Court has maintained its decision to block X in Brazil. According to Reuters, this stance remains in place due to ongoing issues related to X’s failure to appoint a local representative and non-compliance with content removal orders imposed by Moraes.

    Elon Musk, who owns X and has a significant stake in Starlink’s parent company SpaceX, has publicly criticized the court’s actions, labeling them as “censorship.” Musk also serves as the CEO of Tesla, an electric vehicle manufacturer.

    Source: Reuters