Oops! Elon Musk's X sends pending fines to wrong bank, Brazil ban continues

X's legal team said that the fine payments were made correctly as pending dues are the only obstacle for the platform to be reinstated in Brazil

In an embarrassing moment for billionaire Tesla-owner Elon Musk, Brazil's Supreme Court said on Friday that lawyers representing social media platform X (formerly Twitter) made the payment of outstanding fines to the ‘wrong bank’. This goof up delayed the court’s decision on whether to allow X to resume operations in the country.

However, X’s legal team said that the fine payments were made correctly. The pending dues are the only obstacle for the platform to be reinstated in Brazil. The platform has been suspended since late August for failing to comply with local laws on hate speech moderation and appointing a legal representative in the country.

Earlier on Friday, X filed a fresh appeal, asserting that all fines had been cleared. In response, Supreme Court Justice Alexandre de Moraes insisted that the funds be transferred to the correct account. Once the payment issue is resolved, the prosecutor general will review the legal team’s requests to restore X’s services.

Meanwhile, X’s lawyers requested the court to permit the platform’s operation in Brazil at once, denying any error in the fine payment and arguing that further input from the prosecutor general was unnecessary. After complying with the court’s earlier rulings—such as blocking certain accounts under investigation—the company renewed its plea on September 26 to resume its services in the country.

Moraes, however, maintained that X must settle outstanding fines amounting to over $5 million before its suspension can be lifted. On Friday, the company claimed to have paid 28.6 million reais ($5.24 million) in fines, according to Reuters.

X banned in Brazil for non-compliance

The microblogging platform was banned in Brazil in August after missing a court-ordered deadline to appoint a legal representative. Justice Moraes ordered the platform’s immediate suspension until it complies with all legal requirements and pays its pending fines.

The legal battle began in April when the court mandated the suspension of multiple accounts allegedly involved in spreading misinformation. X has an estimated user base of 20 million in Brazil, and by Saturday morning, users reported that access to the platform had been restricted.

Earlier this month, X shut down its office in Brazil after its representative was threatened with arrest for failing to comply with court orders. The company has criticised the legal actions as "censorship" and claimed they were unlawful under Brazilian law.

Justice Moraes had previously ordered those accounts spreading misinformation—mostly belonging to supporters of former president Jair Bolsonaro—be blocked while under investigation. He warned that X's legal representatives would be held accountable if any of the banned accounts were reactivated. 

X has faced substantial fines for non-compliance, with Musk and the company joining others in Brazil who accuse the judge of political bias. This is just one of many conflicts involving Musk, who has also faced regulatory disputes with the European Union and recently clashed with UK Prime Minister Keir Starmer.

(With inputs from Reuters)