The controversy over Elon Musk's X project in Brazil is intensifying, with Starlink in the crosshairs.

• Starlink, Elon Musk's satellite internet company, faced sanctions from Brazil's telecommunications regulator.
• The conflict between Brazil and Musk intensifies as the country refuses to allow his social media company, X, to operate within its borders.
• Starlink is the only company that has stated it will not adhere to the court order to prohibit X, as announced by Artur Coimbra, a commissioner at Brazil's telecommunications regulator Anatel, to Reuters.

Starlink, Elon Musk's satellite internet firm, faced sanctions from Brazil's telecommunications regulator due to a public confrontation with the billionaire over the country's decision to block his social media company X.

This week, Brazil's supreme court upheld its ruling from last week, which ordered a nationwide suspension of X for failing to appoint a legal representative by a court-mandated deadline, in accordance with the country's laws.

Anatel, Brazil's telecommunications regulator, has instructed internet providers to block access to X following a court order. However, only Starlink has informed Anatel that it will not comply with the court decision.

Anatel is investigating the noncompliance of Starlink and other network operators with a court order to block X, and could impose sanctions such as fines and license revocation if they do not comply.

CNBC has reached out to Anatel for comment.

The conflict between Musk and Brazil began in April when an X representative stated that the company was compelled to block certain popular accounts due to court decisions. Following this, Musk announced that the restrictions had been lifted and encouraged users to use a VPN to access X if it were to be banned.

As Brazil prepares for municipal elections in October, the conflict intensified, requiring social networks to hire someone under the country's laws to receive and consider government takedown notices about political misinformation.

The company has not yet removed all its staff from Brazil, despite stating that it would do so last month amid ongoing tensions, resulting in the latest legal disputes.

Top judge

The escalation of the dispute between Musk and Brazil intensifies, particularly fueling the conflict between the billionaire and Brazilian supreme court Justice Alexandre de Moraes, who was responsible for the ban on X.

Last week, Starlink announced that Moraes had placed an order that would freeze the company's finances and prohibit it from conducting any financial transactions in the country.

Last week, Moraes was accused by X of threatening the social network's legal representative with imprisonment. The company's global government affairs team posted on X that the justice froze all of the representative's bank accounts once she resigned.

Moraes has been repeatedly branded an "evil tyrant" by Musk and called for his imprisonment, with Musk also characterizing Brazil's court ruling as censorship.

CNBC was unable to obtain a comment from Brazil's supreme court.

— CNBC's Lora Kolodny contributed to this reported.