Brazil Supreme Court lifts blockage of Starlink, X accounts after $3 million transfer

Brazil’s Supreme Court Justice Alexandre de Moraes has lifted freezes previously imposed on the bank accounts of Starlink and X, following the transfer of 18.35 million reais ($3.3 million) to the national treasury. The funds settled fines imposed on X, owned by billionaire Elon Musk, marking a pivotal moment in an ongoing legal dispute between Musk and the Brazilian judiciary.

The feud stemmed from X’s failure to comply with court orders to block accounts accused of spreading misinformation and hate speech, which Justice Moraes considered threats to democracy. Brazil had blocked access to X, one of the platform’s largest global markets, after it failed to remove flagged content. Musk also criticised the moves of the court, accusing them of being "censorship."

In addition, X never chose to appoint a lawyer in Brazil and thus incurred an action under the local law. Its failure to execute the content removal orders further angered Justice Moraes so that he froze the accounts of Starlink in the country to recover fines owing by X.

While the transfer of funds has solved the short-term financial penalty, the Supreme Court made clear that Moraes has not rescinded the blockage order of access to X in Brazil.The legal issues surrounding X's lack of representation in the country and non-compliance with content removal requirements remain unresolved.

Elon Musk, who also holds a 40 per cent stake in Starlink’s parent company SpaceX and serves as CEO of Tesla , continues to challenge Brazil’s judicial actions. Despite the fines being settled, the case highlights ongoing tensions between tech platforms and international regulatory frameworks.