US agency shuts probe into WhatsApp encryption claims against Meta: report

US agency shuts probe into WhatsApp encryption claims against Meta: report
Utkarsh Roshan
28 Apr 2026, 20:35 PM

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Meta (META) — sell

Sell META. The article says a 10-month federal probe concluded Meta “stores and can view WhatsApp messages” and that there may be civil/criminal violations. Even though Meta denies it, the key is the credibility hit: regulators and counterparties will price higher compliance and legal risk, and the market will keep discounting WhatsApp’s “can’t read messages” promise.

Key Risk: A clear, public finding that the investigator’s claims are wrong or unprovable, leading regulators to drop any follow-on action and restoring trust in WhatsApp encryption.

Accenture (ACN) — sell

Sell ACN. The report links broad access to WhatsApp message content to contractors working under Accenture for content moderation. If that access claim sticks, ACN faces contract losses, regulatory scrutiny, and reputational damage tied to handling sensitive communications.

Key Risk: Evidence that contractors had no ability to read message contents (only metadata or limited test data), and that Accenture’s role is contractually and technically constrained.

  • US agency closes probe into WhatsApp encryption claims.
  • Meta denies allegations, calls them “patently false”.
  • Questions remain over investigator’s findings and evidence.

A US government agency has abruptly closed an investigation into allegations that Meta Platforms could access encrypted messages on its WhatsApp platform, according to a Bloomberg report.

The probe, conducted by an investigator within the Office of Export Enforcement at the Commerce Department’s Bureau of Industry and Security, had examined claims that some Meta employees and contractors could view the contents of encrypted WhatsApp messages.

Investigation closed after internal outreach

The inquiry was shut down shortly after the investigator circulated preliminary findings to officials across multiple federal agencies earlier this year, according to records reviewed by Bloomberg News.

In a January email summarising findings from a 10-month investigation, the agent wrote that Meta “stores and can view WhatsApp messages” and added that “there is no limit to the type of WhatsApp message that can be viewed by Meta.”

The investigator further alleged that the company’s conduct could involve “civil and criminal violations that span several federal jurisdictions,” though he did not specify which laws may have been breached.

The investigation, internally referred to as “Operation Sourced Encryption,” was subsequently closed, with the report describing the decision as abrupt and directed by senior agency leadership.

Meta rejects allegations

Meta strongly denied the claims, reiterating that WhatsApp’s architecture prevents the company from accessing user messages.

“The claim that WhatsApp can access people’s encrypted communications is patently false,” Andy Stone, a spokesperson for Meta, told the news publication.

He added that the Bureau of Industry and Security had previously dismissed the allegations as unsubstantiated and confirmed that it is not investigating WhatsApp or Meta for export law violations.

Conflicting claims over encryption

The allegations contradict Meta’s longstanding position that WhatsApp employs end-to-end encryption, ensuring that only users involved in a conversation can access its contents.

Meta has consistently maintained that “no one outside of the chat, not even WhatsApp, can read, listen to, or share” messages exchanged on the platform.

However, the investigator claimed in his email that Meta has maintained a “tiered permissions system” since at least 2019, allowing varying levels of access to message content, including for contractors and overseas workers.

Bloomberg reported that two individuals interviewed during the investigation said they had broad access to WhatsApp messages while performing content moderation work under contract with Accenture.

Regulatory context and open questions

The investigation was reportedly prompted by a whistleblower complaint filed with the Securities and Exchange Commission in November 2024.

The agent’s email was also sent to officials at the Federal Trade Commission, which oversees Meta’s privacy practices following a record $5 billion fine imposed on the company in 2019.

Despite the closure of the probe, questions remain about the evidence gathered during the investigation and whether other agencies may pursue related inquiries, the report added.