The DNA and genetic testing company 23andMe is experiencing significant turmoil following a major data breach in 2023 and ongoing financial struggles. As bankruptcy looms, concerns are growing about the fate of the genetic data belonging to its approximately 15 million customers.
Once valued at $6 billion, 23andMe’s value has plummeted by more than 99% since going public in early 2021. The decline is attributed to waning consumer interest in its one-time test kits and underwhelming growth in subscription services. Additionally, a months-long data breach in 2023 saw hackers steal ancestry data from nearly 7 million users, leading to a $30 million settlement in September.
Founder and CEO Anne Wojcicki briefly considered third-party takeover proposals before reversing course and opting to take the company private. However, all independent board members resigned shortly thereafter. In March 2024, 23andMe filed for bankruptcy protection, setting the stage for a court-supervised sale of its assets, including vast DNA data banks.
The sale raises questions about the privacy of millions of individuals’ genetic data. 23andMe is not covered under HIPAA, meaning it is largely bound by its own privacy policies, which can be altered at any time. The company’s privacy policy states that customer data may be accessed, sold, or transferred during a bankruptcy, merger, acquisition, or sale.
Wojcicki has indicated that 23andMe will focus on marketing its database of customer data to pharmaceutical companies and researchers rather than pursuing costly drug development programs. Privacy advocates warn that potential buyers may have differing intentions for the valuable DNA data, urging 23andMe to avoid sales to companies with law enforcement ties.
Customers are encouraged to delete their accounts to protect their data. Deleting an account is straightforward but comes with caveats, as some data may still be retained for compliance purposes or if previously consented for research.
— news from TechCrunch