Sep 14, 2024, 1:53 AM
Sep 13, 2024, 12:00 AM

Brazil court lifts freeze on Starlink and X funds after $3 million transfer

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Highlights
  • A Brazilian Supreme Court justice ordered the unfreezing of $3 million in funds from X and Starlink after fines were paid.
  • The decision followed concerns about the legality of freezing Starlink's account, as it operates independently from X.
  • The ruling allows both companies to resume normal financial operations, reflecting ongoing legal challenges faced by Musk's ventures in Brazil.
Story

On a recent Friday, a Brazilian Supreme Court justice, Alexandre de Moraes, ordered the unfreezing of approximately $3 million in funds belonging to social media platform X and satellite internet provider Starlink. This decision followed the transfer of funds from X and Starlink accounts to cover fines owed to the Brazilian government. The ruling was made after legal analysts raised concerns about the initial decision to freeze Starlink's account, as the two companies operate independently. The Supreme Court's statement indicated that the funds transferred included over 7.2 million Brazilian reais from X and nearly 11 million reais from Starlink. The justice's ruling was made public on Wednesday, and the banks holding the accounts were notified of the compliance with the court's decision. X has faced scrutiny in Brazil for its refusal to remove content deemed illegal by the Supreme Court, leading to tensions between the platform and Brazilian authorities. De Moraes had previously suspended X's operations in Brazil due to Elon Musk's decision to eliminate legal representation for the company in the country. Musk has publicly criticized the justice, labeling him as a dictator for his actions against his companies. With the payment of the owed amounts, the Supreme Court concluded that there was no longer a need to keep the accounts frozen, allowing both companies to resume normal financial operations. This case highlights the ongoing legal challenges faced by Musk's ventures in Brazil and the complex relationship between tech companies and regulatory bodies.

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