Mon Mar 24 20:03:13 UTC 2025: ## 23andMe Files for Bankruptcy, Raising Data Privacy Concerns

**San Francisco, CA –** Genealogy and health testing giant 23andMe has filed for Chapter 11 bankruptcy protection, sending shockwaves through the industry and raising serious concerns about the fate of millions of customers’ genetic data. The announcement, made Sunday, followed months of turmoil including a data breach, significant layoffs, and the resignation of co-founder and CEO Anne Wojcicki.

The company, which once boasted a $6 billion market valuation, will now attempt to sell “substantially all of its assets” through a court-approved reorganization. Wojcicki, who resigned to pursue an independent bid for the company, stated her unwavering belief in 23andMe’s future. However, the stock plummeted 50% to 88 cents per share on Monday following the news.

The bankruptcy filing has sparked intense scrutiny regarding the handling of the vast amount of genetic data 23andMe holds. California Attorney General Rob Bonta has publicly questioned what will happen to this sensitive information, particularly given the company’s privacy policy which allows for the sale of data to other firms. While 23andMe insists the bankruptcy process will not affect data storage, management, or protection, Bonta has urged customers to consider deleting their data. He issued an alert last week reminding consumers of their legal rights concerning the sensitive data held by the company.

The company’s struggles are attributed to several factors, including waning demand for at-home DNA testing kits, a significant data breach affecting nearly seven million customers in 2023, and ultimately, a failed business model. Analysts suggest the market for ancestry testing may be saturated. The data breach, which resulted in a $30 million settlement, severely damaged the company’s reputation and compounded its financial woes. The company also laid off 40% of its workforce in November and shut down its therapeutics division.

23andMe’s rapid decline contrasts sharply with its initial success and its high-profile SPAC listing in 2021. The company’s future remains uncertain, but the bankruptcy filing underscores the challenges facing the burgeoning genetic testing industry, and raises critical questions about data privacy and security in an increasingly data-driven world.

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