The US Department of Justice (DOJ) is reportedly scrutinizing Elon Musk's leadership at X Corp, formerly known as Twitter, over potential violations of the Federal Trade Commission's (FTC) data privacy and security order.
According to reports, citing a recent court filing, the DOJ's investigation has exposed a "chaotic environment" at X Corp, raising questions about the company's adherence to the 2022 Administrative Order.
Before Musk's takeover, Twitter had paid a $150 million fine in May 2022 for breaching a 2011 FTC agreement, which mandated a comprehensive privacy and security program.
The order also prohibited the company from profiting from "deceptively collected data" and restricted employee access to user data.
The DOJ filing cites multiple instances where Musk's actions could have compromised data privacy. One example includes Musk's attempt to give a third-party journalist unrestricted access to Twitter's internal systems.
Another instance involves the abrupt relocation of a data centre without following proper protocols. Additionally, Musk proceeded with the relaunch of Twitter Blue, despite being aware of user impersonation risks.
The investigation's findings could have significant implications for X Corp's compliance with regulatory mandates on data privacy and security.