Brazil’s Supreme Court has lifted the freeze on bank accounts linked to Elon Musk’s Starlink and the social media platform X after funds worth $18.35 million Brazilian reais (around $3.3 million) were transferred to the national treasury.

The fines are tied to a legal dispute involving X’s failure to comply with court orders to block accounts accused of spreading misinformation and hate speech in Brazil. The Supreme Court had previously classified this content as threatening democracy, prompting legal actions against the platform.

Supreme Court Justice Alexandre de Moraes fined X for not appointing a local legal representative, as required by Brazilian law. Although the financial penalties have been addressed, X has remained blocked in Brazil since Aug. 30 .

The case has reached the country’s Attorney General’s Office (PGR) over the past few days after the country’s Bar Association and a political party (Partido Novo) challenged the platform’s ban.

On Sept. 12, the PGR argued that suspending the social media platform does not violate free speech rights and stressed that the lawsuits against the ban lack legal grounds.

Related: Brazil’s top prosecutor defends X ban, urges Supreme Court to end disputes

Understanding X’s ban

The conflict between Brazil’s Supreme Court and X erupted when Justice Alexandre de Moraes ordered the platform to block accounts allegedly spreading misinformation and extremist content, which the court deemed threats to the country’s democracy.

Musk refused to comply with the orders, claiming they constituted censorship. The platform’s failure to follow Brazil’s regulations, including its refusal to appoint a legal representative in the country, led to its suspension by the court . There is also a $9,000 fine in place for users who access the platform through virtual private networks (VPNs).

The legal standoff intensified on Sept. 2 when the court upheld the suspension , citing X’s noncompliance with local laws.

Meanwhile, Brazil’s government, led by President Luiz Inácio Lula da Silva, has been supporting the court’s efforts, seeing it as essential to combat misinformation, especially following political unrest reportedly tied to misinformation on social media platforms.

The Supreme Court’s final decision could set important precedents for tech companies operating in Brazil.

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