Elon Musk claims U.S. government ‘deleted a terabyte of financial data to cover their crimes’; data recovered

In a sharp twist that could shake up Washington, Elon Musk says the U.S. government deliberately erased a terabyte of financial data to hide alleged “crimes”—but his team has since recovered it.

Musk, who heads the Department of Government Efficiency (DOGE) under the Trump administration, claimed in an audio message released on March 31. He blamed the deletion on government incompetence, saying his team was able to retrieve the files because federal systems weren’t secure enough to stop them.

The report comes just two months after the DOGE team exposed $100 billion in Medicare and Medicaid fraud and waste.

“The US Government deleted a terabyte of financial data to cover their crimes… But they don’t understand technology, so we recovered it,” Musk said in the recording.

BREAKING: Elon Musk says someone is going to be arrested tomorrow for stealing 400,000 social security numbers and selling the information.pic.twitter.com/vt7CNdXZyI

— Financelot (@FinanceLancelot) April 1, 2025

He later followed up on X, pointing directly at the United States Institute of Peace (USIP), a government-funded organization focused on conflict resolution. Musk didn’t clarify if USIP acted alone or if other agencies were involved.

A terabyte of data could represent millions of financial records—everything from budgets and contracts to payments. If his claim is accurate, it could reveal serious misconduct. But Musk hasn’t released any documentation to support it yet. Without technical details, such as how the data was deleted or how it was recovered, the claim remains in limbo.

The post sparked a flurry of reactions online, with users like @JackStr42679640 and @DukeOfSavannah praising DOGE’s ability to outmaneuver what they called a bloated and outdated federal system. But critics see it differently. Some believe it’s another headline-grabbing statement from a department already under fire.

Since taking charge of DOGE in January, Musk has drawn backlash for accessing sensitive databases at the Treasury and Social Security Administration. Civil liberties groups have raised alarms over privacy concerns, and a federal judge recently limited DOGE’s access to certain Treasury data. Meanwhile, the White House and USIP have yet to respond to the audio or related posts.

DOGE has made bold claims before. Its “wall of receipts” site once showcased supposed federal savings that were later taken down after factual errors came to light. That track record has raised questions about whether this latest bombshell will hold up under scrutiny.

Experts say recovering a terabyte of deleted data is technically possible with the right tools and access—but proof matters. “If they’ve got the goods, let’s see them,” said a former Office of Personnel Management official, who asked to stay anonymous. “Otherwise, it’s just noise.”

Meanwhile, Musk’s critics, including Senator Ron Wyden, have repeatedly warned that his growing influence inside the federal system could pose a risk, especially given his global business ties. But his supporters argue that moves like this—if true—only reinforce the need to break up government waste and secrecy.

With no evidence shared and no official response yet, all eyes are on what comes next: real proof, or another round of political theater.