23andMe files for bankruptcy and looks for a buyer - here's what that means for your data

Independent

24-03-2025

The genetic testing company 23andMe is filing for bankruptcy and looking for a new buyer.
The company announced the move after losing millions of dollars over the last several quarters. But now, experts are warning users' genetic data could be in danger.
Here's what you need to know about how to protect your 23andMe data:
What the sale of 23andMe could mean for your data
Officials across the US are warning 23andMe users to delete their data as soon as possible following the bankruptcy announcement.
'I remind Californians to consider invoking their rights and directing 23andMe to delete their data and destroy any samples of genetic material held by the company,' California Attorney General Rob Bonta said Friday.
23andMe said in a statement there have been 'no changes' to their data storage or protection. The company also said any buyer of its assets would have to observe applicable privacy laws for customer data.
'Our users' privacy and data are important considerations in any transaction, and we remain committed to our users' privacy and to being transparent with our customers about how their data is managed,' the company said in an open letter to customers.
But once the sale is complete users' genetic information could be used in unexpected ways by someone else, The Washington Post reports. 23andMe's privacy policy even states that your personal information could be sold or transferred in the event of a sale.
'If we are involved in a bankruptcy, merger, acquisition, reorganization, or sale of assets, your Personal Information may be accessed, sold or transferred as part of that transaction,' the policy reads.
Consumer Reports' Ginny Fahs told The Washington Post users are 'right to be concerned' their data could be up for grabs.
'The DNA data could be used to discern your relatives and ancestry, unearth family secrets, and reveal clues about diseases you have or could be predisposed to,' Fahs said. 'If the data makes its way to certain insurers, they may deny you coverage or charge you more for life, disability, or long-term care insurance because of your genetics.'
'This is some of the most precious data that exists about you,' she added.
Why is 23andMe filing for bankruptcy?
23andMe has kickstarted voluntary Chapter 11 proceedings in the US – meaning it intends to reorganize its debts and assets to have a fresh start, while remaining in business. The company is now searching for a buyer.
The move comes in the aftermath of a data hack and heavy financial losses.
The DNA testing company has also announced the immediate resignation of Anne Wojcicki, its co-founder and chief executive.
Wojcicki said she was 'disappointed' by the bankruptcy plan but that she had resigned so she could 'be in the best position to pursue the company as an independent bidder.'
How to delete your 23andMe data
To delete your 23andMe account, first log into your account. Then, go to your profile, and hit the 'settings' button.
Scroll down to the '23andMe Data' section and hit 'view.' From there, scroll to 'delete data' and select 'permanently delete data.'
The company will then send you an email prompting you to confirm the deletion request.