I’m a security engineer, and encryption is great, but can be bypassed. Relying on encryption assumes it was implemented properly, that the system was shut down properly so all keys were flushed correctly, and the encryption algorithm doesn’t have weaknesses.

Generally if somebody dedicated enough can acquire physical access to a system, they can probably find a way into it given the right resources. Did that happen here? Probably not. Could it have? Absolutely. That’s why most enterprises or government hard drives are shredded rather than just relying on them being wiped or encrypted.

Encryption is part of the solution, but it’s not automatically the complete solution.

We don’t know what was on those servers, but it was apparently sensitive enough that the government redacted descriptions of the data in court filings.

The US government brief said the relocated servers were not wiped before being moved to a new data center. The type of data on the relocated servers was apparently so sensitive that it could not be described in the US court filing, which redacts the sentence that describes what the servers contained.

https://arstechnica.com/tech-policy/2023/09/us-government-slams-musk-in-court-filing-describing-chaotic-environment-at-x/