Brazil confiscates Musk’s cash
Date
9/17/2024 8:31:09 AM
(MENAFN) In a dramatic escalation of legal tensions, the Brazilian Supreme Court has ordered the seizure of USD3.3 million from the bank accounts of Elon Musk’s companies, X and Starlink. This action follows a series of legal disputes between Musk's entities and Brazilian authorities.
The seizure, executed on Friday, involves the withdrawal of funds from both X and Starlink’s accounts. The court’s decision came after Judge Alexandre de Moraes, who had previously imposed a ban on X’s operations in Brazil and froze Starlink’s assets, ruled that the companies were part of a “de facto economic group.” Consequently, the judge ordered the freezing of these assets in response to fines imposed for non-compliance with court orders.
The total amount seized is approximately 18.35 million Brazilian reals, or USD3.3 million. Of this sum, 11 million reals were withdrawn from Starlink’s accounts, and the remaining amount was taken from X’s accounts. The fines were imposed due to the companies’ failure to remove content as directed by the court and their subsequent withdrawal of legal representatives from Brazil.
The court's decision to unfreeze the assets was contingent on the payment of the fines. The release of the accounts was officially announced after the payment was processed, but the financial impact on Musk’s companies was significant.
Elon Musk has not yet publicly addressed the seizure. However, he previously criticized the action, labeling the freezing of Starlink’s accounts as “absolutely illegal” and asserting that it unjustly targeted a separate entity. Musk also threatened retaliation, stating that unless the Brazilian government returns the seized property, he would pursue reciprocal actions against Brazilian state assets. He further remarked on the situation with a reference to Brazilian President Luiz Inácio Lula da Silva, suggesting that Lula might face difficulties with commercial flights due to the ongoing dispute.
This legal conflict highlights the strained relationship between Musk’s companies and Brazilian authorities, underscoring broader issues of international business compliance and legal jurisdiction.
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