Elon Musk, Data Breach Suit, New York NY, 2025

New York Attorney General Letitia James has taken the lead in a landmark lawsuit against Elon Musk and his cryptocurrency project DOGE. The coalition, which includes 18 other state attorneys general, accuses the tech tycoon and his digital venture of unauthorized access to Americans’ private information.

The lawsuit filed on February 7, 2025, alleges that Musk and DOGE were provided illegal access to the Treasury Department’s central payment system by the Trump administration. This granted them access to sensitive data including bank account details and Social Security numbers of millions of Americans.

James asserts that such access poses a significant threat to federal funds meant for health care, childcare, and other critical services. The lawsuit also seeks to prevent any potential unconstitutional freeze on essential funding, emphasizing the importance of securing American citizens’ information.

Starting February 2, 2025, the Treasury Department’s new policy allowed ‘special government employees,’ including Musk and DOGE members, access to its central payment system. This system controls billions in federal funds that are crucial for services like law enforcement and public education.

Attorney General James and her coalition argue that this expansion of access is illegal and unconstitutional, violating federal law that limits BFS access to career civil servants with proper security clearances. They seek an injunction to stop the expanded access policy and a declaration that it is unlawful.

The lawsuit names as defendants Elon Musk, DOGE, and their associated entities. It is being handled by Special Counsel Andrew Amer, Colleen Faherty, Rabia Muqaddam, under the supervision of First Deputy Attorney General Jennifer Levy.

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