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

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.

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.

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