Brazil appears to be on the brink of banning Elon Musk‘s social media platform X Corp., formerly known as Twitter, before October.

What Happened: According to data from prediction market Polymarket, there is an 80% chance of this occurring, with the market showing a significant 28% increase in recent trading.

The potential ban stems from an escalating legal dispute between Musk and Brazilian authorities, particularly Supreme Court Justice Alexandre de Moraes.

The conflict centers around X’s compliance with court orders to block certain accounts accused of spreading misinformation, a demand Musk has characterized as censorship.

On Thursday, the Brazilian Supreme Court took dramatic action by imposing a financial freeze on Starlink, a subsidiary of Musk’s SpaceX.

This move came in response to X’s failure to appoint legal representatives in Brazil and pay outstanding fines related to document requests.

Justice de Moraes has given X a 24-hour ultimatum to designate a legal representative in Brazil or face potential suspension.

The court’s decision emphasizes that companies failing to comply with Brazilian laws or protect user privacy could face temporary suspension of their activities.

Musk has publicly criticized the court’s actions, calling Justice de Moraes a “criminal wearing judges robes like a Halloween costume.”

The potential ban of X in Brazil, one of its largest markets, comes at a challenging time for the platform, which is already grappling with declining advertising revenue.

This situation highlights the growing tensions between global tech platforms and national regulatory frameworks.

What’s Next: These topics will be central to Benzinga’s upcoming Future of Digital Assets event on Nov. 19, where industry leaders and experts will likely address the implications of such international disputes on the digital landscape.

• Read More