Wed Mar 26 05:07:04 UTC 2025: ## 23andMe Bankruptcy Threatens Sale of 15 Million Users’ Genetic Data
**NEW YORK/CALIFORNIA** – The bankruptcy filing of 23andMe, a leading direct-to-consumer genetic testing company, has sparked alarm over the potential sale of the genetic data of its 15 million users. Following the company’s Chapter 11 filing on March 23rd, New York and California’s Attorneys General are urging residents to delete their data from the website.
Founded in 2006, 23andMe amassed a vast genetic database through its ancestry and health-related testing services. After a failed pivot into drug research and subsequent layoffs, the company now faces delisting from the NASDAQ and a potential asset sale as part of bankruptcy proceedings. A 45-day bidding period for 23andMe’s assets is underway, including a bid from former CEO Anne Wojcicki.
While 23andMe assures customers that data protection measures remain in place and any buyer would be legally bound, experts express skepticism. NYU Grossman School of Medicine’s Arthur Caplan argues that a new owner wouldn’t be obligated to uphold 23andMe’s current data privacy policies, raising concerns about the potential for data misuse. The absence of a comprehensive federal data privacy law in the US further exacerbates these concerns.
The company’s history includes a 2023 data breach affecting nearly 7 million users, resulting in a $30 million class-action lawsuit settlement. Concerns have also been raised about the scientific validity of 23andMe’s ancestry testing claims. Caplan suggests that the ancestry aspect served primarily as a means to acquire vast amounts of genetic data for research purposes.
The situation highlights the vulnerability of genetic data in the absence of robust federal regulations and underscores the importance of user awareness and control over personal information. The sale of this sensitive data could have far-reaching implications for individual privacy and potential misuse by future owners.
First Piper 