Business
As 23andMe Files for Bankruptcy, Americans Scramble to Protect Their Genetic Data
By Jake Beardslee · March 31, 2025
23andMe Bankruptcy Raises Questions About User Data
The recent bankruptcy filing by consumer genetic testing giant 23andMe has ignited widespread concerns over the fate of sensitive genetic data from more than 15 million users. According to online traffic analysis firm Similarweb, web traffic to the consumer DNA testing company’s site surged by over 500% on the day of the announcement, as anxious customers scrambled to delete their data and close their accounts. JeepersMedia / Flickr
Experts Voice Concerns Over Potential Sale of Genetic Information
The sharp reaction stems from fears that 23andMe’s trove of DNA data may be sold to the highest bidder during bankruptcy proceedings. “This development is a disaster for data privacy,” warned Margaret Hu, professor of law at William & Mary, in an interview with CNBC. She emphasized the urgent need for robust federal data protection laws, adding, “Will the next company that buys 23andMe do that?”—in reference to potentially weakening privacy safeguards. 23andMe / Wikimedia
California Officials Advise Users to Delete DNA Data
In California, the Attorney General’s office is advising residents to have their DNA data deleted and biological samples destroyed. Despite these efforts, Hu believes a more comprehensive, nationwide response is needed. geralt / Pixabay
Past Data Breaches Add to Concerns Amid Bankruptcy
In 2023, nearly 7 million 23andMe users were impacted by a breach, leading to a $30 million settlement and promises of improved security. But bankruptcy places the company in a vulnerable position, and critics fear that pharmaceutical companies or foreign buyers may exploit the situation. Coolcaesar / Wikimedia
How 23andMe Built—and Shared—Its Genetic Data Library
The company, founded in 2006 with early backing from Google, initially gained popularity by offering affordable DNA testing for ancestry and health insights. In its heyday, up to 80% of users consented to share their data for research purposes, fueling drug development and genetic studies. While 23andMe claims it shares anonymized and aggregated data with partners, experts caution that financial distress could prompt changes in data-sharing policies.Rob Lee of the SANS Institute told CNBC that the issue extends beyond 23andMe. “People don’t understand the scope…your digital footprints are being left out there,” he said. John Murphy / Wikimedia
23andMe Co-Founder Speaks Out After Bankruptcy: ‘Painful to Think What Could Have Been
In a post on X, 23andMe co-founder Linda Avey shared a sharp critique of the company’s trajectory, following news of its bankruptcy. “Without continued consumer-focused product development, and without governance, 23andMe lost its way,” she wrote. Reflecting on its early potential, she added: “It is painful to think what could have been—the category-defining Google of digital health.” Luca Sartoni / Wikimedia
'Cautionary Tales': Avey Urges Rethink of 23andMe’s Future
Avey, who left the company in 2009, also raised concerns about data security and leadership, writing, “The 14+ million people who bought into the concept deserve to see their data moved to a secure platform with new leadership and vision.” She concluded: “There are many cautionary tales buried in the 23andMe story.” Pixabay / Pexels