Genetic testing company 23AndMe, once a pioneer in consumer DNA testing, filed for Chapter 11 bankruptcy amid growing concerns over economic struggles, leadership cradles and security of client genetic data. Let’s take a look at the meaning of this development and some steps to protect your sensitive information.
23andme Saliva Collection Kit (23andme) (Kurt “Cyberguy” Knutsson)
23andme’s collapse: The timeline of challenges
23Andme’s journey from a $6 billion valuation in 2021 to bankruptcy in 2025 is characterized by significant hurdles.
- Data Breaches in 2023: a Cyber Attack It infringed the genetic and personal data of approximately 7 million users, leading to litigation and reputational damage.
- Leadership Changes: CEO Anne Wojcicki resigned as part of his bankruptcy announcement and positioned himself as a potential buyer for the company.
- Economic decline: The company’s shares have plummeted from over $300 per share to under $1, reflecting a deterioration in financial health.
- Reducing the workforce: In November 2024, 23andme fired 40% of its employees as part of its restructuring efforts.
- Bankruptcy filing and sales process: On March 23, 2025, 23AndME launched a voluntary Chapter 11 procedure at the U.S. Bankruptcy Court in the Eastern District of Missouri to promote a sales process aimed at maximizing the value of its business. The company plans to continue normal operations throughout the process, highlighting that there will be no changes to how customer data is stored, managed or protected.
Despite these challenges, the company says bankruptcy filings will not affect how they manage or protect their customer data. However, concerns remain regarding the potential sale of assets that contain sensitive genetic information.
23andme Saliva Collection Kit (23andme) (Kurt “Cyberguy” Knutsson)
23AndMe Board seeks to maximize value through the sale of court supervision
“After a thorough assessment of the strategic alternative, we determined that the court’s teacherized sales process was the best way to maximize the value of our business,” said Mark Jensen, chairman and member of the 23andMe board’s special committee. “We hope that the court’s oversight process will advance efforts to address the operational and financial challenges we face, including further cost reductions and legal and lease liability resolution. We believe in the value of our people and assets, and we hope that this process will help people access, understand and benefit the human genome for the benefit of our customers and patients.
Jensen continues, “We want to thank our employees for their commitment to our mission. We are committed to supporting them as we progress through the process. We are also committed to continuing to protect our customer data and being transparent about managing our user data in the future, and data privacy is an important consideration in potential transactions.”
23andme Saliva Collection Kit (23andme) (Kurt “Cyberguy” Knutsson)
Employee screening data breach has released 3.3 million records
What happens to your genetic data during bankruptcy?
Companies like 23andme Files for bankruptcy,the assets, including customer data, can become part of the sales process. Meanwhile, some state privacy laws California’s genetic information privacy lawrequires explicit consent before transferring genetic data to the new owner. The risk of misuse or unauthorized access remains.
23AndMe assures our customers that every buyer must comply with applicable privacy laws. However, genetic data is a valuable asset that can be misused if it is not properly protected.
Plus, just a week and a half ago, 23andme updated its terms and conditions, which we reviewed. They added important legal disclosures that could prevent individuals from filing lawsuits in anticipation of court trials. Instead, unless you opt out by notifying 23andMe within 30 days of your initial use, you will be automatically bound by new terms that enforce the parties into arbitration pathways of legal relief that may arise now or in the future.
We strongly encourage you to protect your rights by emailing Arbitrationoptout@23andme.com with a clear notice that you intend to opt out of arbitration. Make sure to use the email address associated with your 23andMe account. That’s the first thing you should do in my next step that you want to take to protect your rights and privacy now.
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Steps to protect genetic data
If you are a 23AndMe user or are considering using similar services, here are the steps to protect your confidential information and protect your data from potential misuse and theft.
1) Opt out of arbitration: If you wish to retain the right to sue the company in case of future issues, we will opt out of the arbitration agreement by emailing you a notice to opt out of arbitration arbitrationoptout@23andme.com Within 30 days of first use.
2) Check your privacy preferences: Check your privacy and data sharing settings regularly to match your comfort level.
3) Limiting participation in the study: If you are concerned about how your data will be used, disable participation in a research or product development initiative.
4) Download and protect your data. Before considering deleting your account, download your genetic records and keep them securely on your encrypted device or cloud service.
5) Request data deletion: If you do not wish to store your data by 23andMe, we will request that you delete it via account settings. Please also request physical samples destruction.
6) Use strong passwords and multifactor authentication. It is essential to create unique and complex passwords for each account and device. Do not reuse your passwords on multiple accounts. This type of password reuse has been a recent factor. 23andMe Data Breaches. Enable two-factor authentication if your password is compromised and is provided to add an additional layer of security that will help prevent unauthorized access. Check out my best expert reviewed password managers of 2025.
7) Monitor suspicious activity and use identity theft protection. Leakage of genetic data can lead to identity theft and medical fraud. Consider signing up for a personal theft protection service that monitors your personal information such as social security numbers, phone numbers, emails and more, and alerting you if this data is found on the dark web. Some identity theft services include up to $1 million in identity theft insurance to cover losses and legal costs, and a dedicated fraud resolution team with US-based case managers to help you recover stolen assets or identities. Check out my expert recommendations: Here are the best identity theft protection services of 2025:.
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Important takeouts in your cart
23andMe bankruptcy serves as a cautionary tale of the risks associated with sharing sensitive genetic information. The company is committed to maintaining privacy standards during this turbulent period, but consumers need to remain vigilant. By taking control of your data now, you can protect yourself from potential misuse at times of uncertainty through enhanced privacy settings and deleting them.
Do you think genetic testing companies are doing enough to protect your data in the face of financial instability and potential bankruptcy? Write us and let us know cyberguy.com/contact.
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