In a surprising turn of events, Treasury Department officials admitted on Tuesday that an agency error briefly granted a member of Elon Musk’s team the ability to modify a sensitive federal payments database. This revelation has prompted an ongoing forensic investigation into the matter.
The admission came through a series of court filings that contradicted previous public statements from the Trump administration. Officials had repeatedly asserted that the DOGE team’s access to the federal payments system was strictly "read-only." However, sworn declarations revealed that Marko Elez, a former SpaceX and X engineer, was mistakenly given “read/write” access to the system on February 5.
Elez, just 25 years old, had a short-lived tenure at the Treasury Department. He resigned the very next day after The Wall Street Journal exposed racist social media posts linked to him. Treasury officials clarified that he has not been reinstated.
The case has drawn significant legal attention, playing out in a federal court in New York. The Trump administration has been trying to overturn a judge’s order that barred political appointees from accessing Treasury’s payment system—a system that oversees the movement of $5 trillion annually. On Tuesday, the judge modified the ruling, permitting Treasury Secretary Scott Bessent and other Senate-confirmed officials to access the system while maintaining restrictions on political appointees and DOGE-affiliated personnel.
The filings provided fresh insights into the DOGE team’s initial objectives upon gaining system access. According to Treasury officials, they were tasked with identifying and flagging payments tied to foreign aid. This initiative aligned with President Donald Trump’s executive order to halt specific foreign aid disbursements. The flagged payments included those under the Department of Health and Human Services’ refugee assistance programs. The ultimate goal was to enable the State Department to determine whether these disbursements should proceed under the new policy.
Thomas Krause, another Musk associate and the leader of Treasury’s DOGE team, shed more light on the team’s operations. In his declaration, he detailed his dual role: while serving as CEO of Cloud Software Groups, he also operates as an unpaid Treasury employee leading the DOGE initiative.
Krause emphasized his allegiance to Treasury, despite his external affiliations. The Trump administration has even appointed him to take over responsibilities as Treasury’s fiscal assistant secretary—a role that oversees the federal payments system. However, Krause noted that he had not officially assumed that position yet.
In his statement, Krause disclosed that Treasury had commenced a 4-6 week study of the federal payment system on January 26. The project aimed to minimize fraud and enhance operational efficiency and security. The initiative was still in its early stages when Elez unexpectedly resigned, disrupting the process.
The mishap with Elez’s access was addressed in depth. Treasury’s Bureau of the Fiscal Service discovered the mistake on the morning of February 6—just a day after Elez had been granted improper permissions. While Elez technically had "read/write" access for a brief period, an internal review suggested that he neither accessed the system nor utilized those permissions.
Joseph Gioeli, a senior Treasury official, provided further assurances regarding the safeguards in place. According to Gioeli, the department implemented strict controls to limit the DOGE team’s system privileges, ensuring that their role remained primarily observational. He highlighted measures such as restricting read-only queries to off-peak hours to prevent disruptions and deploying cybersecurity tools to monitor Elez’s activity.
Despite these precautions, the temporary misconfiguration did occur, leading to an immediate forensic investigation. Treasury officials have been meticulously reviewing logs from Elez’s Bureau-issued laptop, and as of now, the investigation remains ongoing. Initial findings suggest that Elez did not modify any database entries during his brief access window.
Meanwhile, Scott Bessent has repeatedly insisted, both publicly and in court filings, that the DOGE team only had “read-only” access and could not alter any system functionalities. However, Treasury’s shifting explanations have drawn criticism from congressional Democrats, who accuse the department of providing inconsistent information about the DOGE team’s true level of access.
Complicating matters further, WIRED Magazine reported on February 4 that Elez had the ability to write code on two Treasury payment systems, fueling concerns about the integrity of the federal payments infrastructure.
Following Elez’s resignation, the situation took a political turn. Former President Trump, Vice President JD Vance, and Elon Musk all expressed their belief that Elez should be rehired by DOGE. However, as of Tuesday, Treasury officials confirmed in court filings that Elez is no longer employed at the agency.
The incident raises questions about internal controls within the Treasury Department and the broader implications of political appointees accessing sensitive financial systems. As the forensic investigation continues, it remains to be seen whether further revelations will emerge and what impact this controversy will have on the Trump administration’s financial oversight policies.
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