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Elon Musk Fires Back After Brazilian Judge Freezes Financial Assets Of SpaceX And X

Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of X looks on during the Milken Conference 2024 Global Conference Sessions at The Beverly Hilton in Beverly Hills, California, U.S., May 6, 2024. David Swanson | Reuters

(CNBC) Tesla, SpaceX and X Corp. leader Elon Musk ramped up his online attacks on Brazilian Supreme Court justice Alexandre de Moraes on Thursday, amid an intensifying political and legal battle between the tech billionaire and his companies, and Brazil’s highest court.

X Global Government Affairs issued a statement on Thursday evening ahead of an anticipated suspension of its platform in Brazil. Among other things, the company said X plans to publish all of de Moraes’ demands, which it believes to be illegal, and related court filings in coming days “in the interest of transparency.”

De Moraes’ court announced on Wednesday that it was ordering Musk and X Corp. to appoint a legal representative for the social media company, formerly known as Twitter, in Brazil within 24 hours, or X would face “penalty of suspension of activities” there.

A suspension of X in Brazil could cause serious business problems for the already embattled social network. Brazil has a population of more than 171 million active social media users, according to market research by Oosga.

The nation is preparing for October municipal elections. And under Brazil’s laws, social networks there have to employ someone who can receive and consider government takedown notices about political misinformation.

X has no such employee in Brazil, after the company said it was removing all its employees from the country earlier this month.

On Wednesday night, Musk posted a manipulated image that appeared to show the judge behind bars. “One day, @Alexandre, this picture of you in prison will be real. Mark my words,” Musk wrote to de Moraes and Musk’s 195.8 million listed followers on X.

On Thursday, reports from G1 Globo in Brazil had revealed that de Moraes had ordered “the freezing of all financial assets” of Musk’s companies in Brazil, including SpaceX-owned Starlink, to “guarantee the payment of fines” the court had levied against X.

“Earlier this week we received an order from Brazil’s Supreme Court Justice @alexandre de Moraes that freezes Starlink’s finances and prevents Starlink from conducting financial transactions in that country,” the company said in a post late Wednesday.

“This order is based on an unfounded determination that Starlink should be responsible for the fines levied—unconstitutionally—against X,” the company said. “It was issued in secret and without affording Starlink any of the due process of law guaranteed by the Constitution of Brazil. We intend to address the matter legally.”

On August 29, 2024, in Brazil, the Minister of the Supreme Court, STF Minister Alexandre de Moraes, orders the blocking of the accounts of another company, Starlink, of Elon Musk, to guarantee the payment of fines imposed by the STF due to the lack of representatives of X in Brazil. (Photo by Ton Molina/NurPhoto via Getty Images)
On August 29, 2024, in Brazil, the Minister of the Supreme Court, STF Minister Alexandre de Moraes, orders the blocking of the accounts of another company, Starlink, of Elon Musk, to guarantee the payment of fines imposed by the STF due to the lack of representatives of X in Brazil.
Ton Molina | Nurphoto | Getty Images

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