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X’s Return to Brazil Faces Further Delays After Paying Fines to Wrong Bank, Court Says

ByHilary Ong

Oct 7, 2024

X’s Return to Brazil Faces Further Delays After Paying Fines to Wrong Bank, Court Says

X’s return to Brazil is facing further delays after the Brazilian Supreme Court revealed that the company paid its fines to the wrong bank. This development, reported by Reuters, follows X’s compliance with several of Brazil’s demands after weeks of being banned in the country.

The company had previously taken steps to address Brazil’s requirements, including naming a legal representative for the country and taking down accounts spreading misinformation and hate speech. Despite these efforts, X’s suspension remains in place due to issues with the payment of its fines.

Brazil’s Supreme Court filings from Friday reveal that while X claims to have paid the fines and has requested the restoration of services, Justice Alexandre de Moraes stated that the funds were transferred to the wrong bank. He further clarified that the reinstatement of X’s services would be delayed until the payments are made correctly. The fines, reportedly amounting to approximately $5 million, represent the final obstacle in X’s efforts to resume operations in Brazil.

The conflict between X and Brazil initially escalated in August when the country’s Supreme Court banned the social media platform, formerly known as Twitter, for failing to appoint a legal representative and refusing to comply with the government’s orders to remove accounts disseminating misinformation and hate speech. At the time, X owner Elon Musk had referred to these orders as “censorship” and resisted compliance, leading to the company’s suspension in Brazil.

However, the situation shifted in September when X began adhering to the court’s demands. In addition to appointing a local legal representative, the company agreed to remove the offending accounts. This appeared to clear the path for X’s reinstatement in Brazil, with the only remaining requirement being the payment of fines imposed by the court. X paid $3.3 million in fines by late September but was informed by Brazil’s Supreme Court that an additional $5 million was necessary for the suspension to be lifted.

On Friday, X filed a new request for the suspension to be lifted, claiming it had paid all outstanding fines. However, Justice de Moraes responded that X needed to ensure the fines were paid to the correct bank before Brazil’s prosecutor general could consider the company’s request. X’s legal team, however, denied that the payments had been misdirected, insisting that the fines had been paid correctly. They also contested the need for the prosecutor general’s approval to reinstate X in Brazil.

Despite these latest developments, X remains banned in Brazil, with its reinstatement contingent on resolving the payment issue.


Featured Image courtesy of UESLEI MARCELINO/REUTERS

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Hilary Ong

Hello, from one tech geek to another. Not your beloved TechCrunch writer, but a writer with an avid interest in the fast-paced tech scenes and all the latest tech mojo. I bring with me a unique take towards tech with a honed applied psychology perspective to make tech news digestible. In other words, I deliver tech news that is easy to read.

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