No, that's an oversimplification. The judge has been asking the representatives in Brazil to block some accounts that have been spreading disinformation. The representatives replied to the judge saying they're just representatives and X/Twitter wouldn't comply with that request. In Brazil, if you're the representative of a company, you have to have the power to comply with Brazil's laws. As they were not complying, the judge gave them extra time to comply and mentioned if they didn't comply, the local president/director/representative would go to jail. That's when X/Twitter closed the representation in Brazil.

After that, the only action left available for the judge was to block X/Twitter.