15M 23andMe Customers at Risk as DNA Testing Firm Files for Bankruptcy

• The genetic data of over 15 million people could be at risk following the bankruptcy of DNA testing firm 23andMe.
• 23andMe’s assets are valued between $100 million and $500 million.
• Privacy experts and lawmakers have urged customers to delete their 23andMe accounts.

DNA testing company 23andMe filed for Chapter 11 bankruptcy in the U.S. on Sunday and announced it was looking to sell itself, putting the data of its 15 million customers at risk.

The firm, which suffered a major hack in 2023, said it had secured a debtor-in-possession financing commitment for around $35 million.

23andMe Bankruptcy

CEO Anne Wojcicki announced she was resigning on Monday, the company said she would be replaced by CFO Joe Selsavage on an interim basis.

“I have resigned as CEO of the company so I can be in the best position to pursue the company as an independent bidder,” Wojcicki wrote on X.

“If I am fortunate enough to secure the company’s assets through the restructuring process, I remain committed to our long-term vision of being a global leader in genetics and establishing genetics as a fundamental part of healthcare ecosystems worldwide,” she added.

Wojcicki had previously made several attempts to sell the company but was rejected by the board every time.

“After a thorough evaluation of strategic alternatives, we have determined that a court-supervised sale process is the best path forward to maximize the value of the business,” board Chair Mark Jensen said in a company statement .

According to a court filing seen by Reuters , the company’s estimated assets and liabilities are between $100 million and $500 million.

Shares of 23andMe are down 50% so far in 2025.

23andMe Customer Data at Risk

The bankruptcy and potential sale of 23andMe have raised alarm bells for its 15 million customers and privacy experts.

Most privacy experts recommend avoiding handing over data to DNA testing services because sharing sensitive genetic data can be dangerous.

23andMe claims that its new owner would have to comply with existing laws protecting consumer genetic data; however, many U.S. states have no laws protecting this kind of data.

For example, California does not feature any laws regulating the use of genetic data.

On Friday, March 21, Attorney General Rob Bonta issued an urgent “consumer alert” encouraging Californians to delete 23andMe data.

“California has robust privacy laws that allow consumers to take control and request that a company delete their genetic data,” said Attorney General Bonta.

“Given 23andMe’s reported financial distress, 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.”

Hacked in 2023

In December 2023, 23andMe suffered a massive data breach exposing sensitive genetic and personal information of around 7 million users.

Hackers used stolen usernames and passwords from previous, unrelated data breaches to access 23andMe accounts where users had reused their login credentials.

Once inside, they exploited the company’s DNA Relatives feature, collecting extensive genetic and personal data from both individual users and their relatives.

The company suffered intense damage to its reputation and agreed to a $30-million settlement in a lawsuit related to the breach.