Elon Musk’s Dogecoin Faces Scrutiny from Regulators

The US Department of Government Efficiency, led by Elon Musk, is facing a government audit. The Government Accountability Office (GAO) has been investigating how the organization handled sensitive data at multiple federal agencies.

Background of the Investigation

Since March, the GAO has been auditing the Trump administration‘s initiative to slash federal expenditures. The probe concerns how DOGE, which refers to as the US DOGE Service (USDS), handled sensitive data at various agencies. The GAO is seeking incident reports on ‘potential or actual misuse of agency system or data‘ and other relevant documentation.

GAO’s Focus

The congressional watchdog is focusing on DOGE‘s adherence to privacy and data protection laws, examining every system that the organization has been given access to. At the Department of Labor, the GAO has sent specific requests to detail how DOGE has interacted with the agency. The requests include descriptions of safeguards in place to protect confidential information.

Concerns Over DOGE‘s Handling of Sensitive Data

DOGE operatives have gained unprecedented levels of access to federal agencies‘ backend systems, touching on tax records and other sensitive data. This raises concerns given the questionable qualifications of its employees, including its head honcho. Some members of DOGE have had past ties to cybercrime, which is a disquieting prospect.

Need for Transparency

Americans expect that when they share personal information with the government, it will be safeguarded. However, this has not been the case with DOGE. House representative Richard Neal (D-MA) stated, ‘That is not what’s happened with DOGE, and why, at my request, the Government Accountability Office is working to shed much-needed light on their access to and use of personal and confidential information.‘

Next Steps

The review will wrap up by the end of spring, which will be used to create a public report. The GAO has received requests to review actions taken by DOGE across multiple agencies. However, the agency cannot provide additional details or estimates on when the work will be completed until they determine the full scope of what they will cover and the methodology to be used.