23andMe Bankruptcy Sparks Privacy Panic: What Happens to Your DNA Now?
Bankruptcy Filing and Leadership Shakeup: 23andMe, a leading DNA testing company, filed for Chapter 11 bankruptcy on March 23, 2025, with CEO Anne Wojcicki stepping down but remaining on the board to bid for the company’s assets.
Genetic Data at Risk: The filing raises alarms about the potential sale of 15 million users’ genetic data, amplified by past breaches and allegations of data sharing with pharmaceutical firms and foreign entities.
The personal genomics industry was dealt a seismic blow on March 23, 2025, when 23andMe, a pioneer in consumer DNA testing, filed for Chapter 11 bankruptcy in the U.S. The company, once valued at $6 billion in 2021, has been grappling with a steep decline in demand for its ancestry testing kits, a devastating 2023 data breach that compromised the information of 7 million users, and a series of failed strategic maneuvers. The bankruptcy filing has ignited widespread concern over the fate of the genetic data of its 15 million users, a treasure trove of sensitive information that could now be auctioned off to the highest bidder in a court-supervised process.
Adding to the turmoil, Anne Wojcicki, the co-founder and CEO of 23andMe, announced her immediate resignation from the top role, though she will remain on the company’s board. Wojcicki, who founded the company in 2006 with the mission of democratizing access to genetic information, has been a central figure in its rise and fall. Her departure comes after a contentious period marked by her unsuccessful attempts to take the company private. In 2024, she made multiple buyout offers, including a final bid of 41 cents per share that valued 23andMe at a mere $11 million—a stark contrast to its peak valuation. The board rejected her proposals, leading to the resignation of all seven independent directors in September 2024. Now, Wojcicki intends to participate in the bidding for 23andMe’s assets during the bankruptcy proceedings, though it remains unclear who else might enter the fray.
The most pressing concern for consumers and privacy advocates is the potential sale of 23andMe’s vast genetic database. The company holds DNA samples and associated personal information from over 15 million individuals who used its services to explore their ancestry, health risks, and genetic traits. In the bankruptcy process, this data could be sold to other entities, raising fears about how it might be used—or misused. A 2023 data breach that exposed the data of nearly half of 23andMe’s user base already eroded public trust, and recent allegations have further fueled the fire. Reports have surfaced claiming that 23andMe has been sharing consumer data with pharmaceutical companies, including entities linked to the "Ministry of Defense of Russia" and shareholders in Russia and China, according to a U.S. Treasury Department policy advisor. While 23andMe has denied such claims, the allegations have intensified scrutiny on the company’s data practices.
California Attorney General Rob Bonta has taken the unusual step of issuing a privacy “consumer alert,” urging 23andMe users to delete their genetic data and request the destruction of their biological samples. “Given the sensitivity of this data, the previous breach, and the precarious finances of the company, consumers may decide the best course of action would be to just delete their data so the company no longer has it,” echoed Connecticut Attorney General William Tong. Privacy laws like the California Consumer Privacy Act of 2018 and the Genetic Information Privacy Act provide users with the right to delete their data, but the onus is on individuals to take action—a daunting task for many who may not even be aware of the risks.
The implications of 23andMe’s collapse extend far beyond its corporate failure. Genetic data is uniquely sensitive; unlike a password or credit card number, it cannot be changed and can reveal intimate details about an individual’s health, ancestry, and even predispositions to certain diseases. If this data falls into the wrong hands—whether through a sale to a new company with lax security or through another breach—it could be used in ways consumers never anticipated, from discriminatory practices by insurers or employers to exploitation by foreign entities. The Pentagon’s past warnings to military personnel against using at-home DNA kits due to national security concerns underscore the gravity of the situation.
For now, 23andMe has secured $35 million in financing to continue operations during the bankruptcy process, and the company insists that its privacy policies will remain intact. However, experts like I. Glenn Cohen from Harvard Law School argue that the lack of robust federal protections for genetic data leaves consumers vulnerable. The Genetic Information Nondiscrimination Act offers some safeguards against misuse by insurers and employers, but it does not address the broader risks of data sales or breaches. As 23andMe navigates its uncertain future, the saga serves as a stark reminder of the risks inherent in sharing our most personal information with private companies—and the urgent need for stronger regulations to protect it. For the 15 million individuals whose DNA is in 23andMe’s hands, the question remains: what happens next?