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23andMe, the popular at-home genetic testing company, has filed for bankruptcy in a move to facilitate the sale of its business. The company, which revolutionized genetic testing with its saliva sample analysis, has faced significant financial challenges, exacerbated by a major data breach in 2023 that exposed the personal information of millions of users.
On March 23, 2025, 23andMe announced its decision to seek bankruptcy protection to address its liabilities and find a buyer for the company. The move is aimed at resolving financial issues while maximizing value for stakeholders. However, the bankruptcy has raised concerns about the safety of sensitive customer data, especially after the 2023 breach, which involved attackers stealing genetic information using compromised login credentials.
The leaked data included details such as names, sex, age, location, and genetic markers linked to ancestry. This has prompted users to worry about their genetic data being exploited or falling into the wrong hands. California’s Attorney General, Rob Bonta, urged 23andMe customers to exercise their right to have their genetic data deleted under state privacy laws, including the Genetic Information Privacy Act (GIPA) and the California Consumer Protection Act (CCPA).
Despite the bankruptcy filing, 23andMe has assured its customers that its operations will continue as usual throughout the sale process. The company stated that there will be no changes to how customer data is stored or managed, and any new owner will be required to comply with applicable privacy laws regarding customer data. The company has also promised to prioritize data privacy in any potential sale or transaction.
As 23andMe navigates its bankruptcy proceedings, the future of its genetic database remains uncertain, leaving many customers concerned about the fate of their personal data. With privacy at the forefront of discussions, the company’s next steps will likely be closely scrutinized by both potential buyers and regulators. As the sale process unfolds, 23andMe’s ability to rebuild trust and ensure the protection of sensitive genetic information will be crucial in determining its long-term viability, or whether it will become another cautionary tale in the growing field of personal data management.
