Brazil Seizes Millions from X and Starlink in Dispute with Elon Musk

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In a move widely criticized as authoritarian, Brazilian federal judge Alexandre de Moraes ordered the seizure of fines totaling $3.46 million from the bank accounts of Elon Musk's companies X (formerly Twitter) and Starlink. According to Brazil's Supreme Federal Court, the amount—equivalent to 18.35 million reais—has been transferred to the federal treasury, allowing the previously frozen accounts of both companies to be unfrozen.

The fine was imposed on X for refusing to suspend user accounts spreading misinformation, and for failing to appoint a legal representative within a court-ordered deadline. This led Judge Moraes to order the suspension of X's operations in Brazil in late August.

Musk, however, sharply criticized the decision, calling it an attack on free speech and describing Judge Moraes as a "wicked dictator." Musk emphasized that X and Starlink are completely separate companies with different shareholders, making the Brazilian court’s actions legally baseless. Seizing funds from SpaceX-related businesses like Starlink to pay for fines against X is not just unjust, it clearly violates fundamental corporate distinctions.

Musk’s claim is entirely correct—X and Starlink operate independently. Brazil’s actions, therefore, have been widely condemned as a gross overreach, reflecting a dictatorial misuse of power. This has raised serious concerns internationally about the state of judicial processes in Brazil.