(DailyEmailNews.com) – After failing to protect millions of Americans’ genetic data, the once-iconic 23andMe has sparked controversy and widespread concern due to a recent bankruptcy filing.
Following a massive data breach, the company’s valuation plummeted from a staggering $6 billion to a mere $48 million.
23andMe Holding Co. officially initiated Chapter 11 bankruptcy proceedings in the US Bankruptcy Court for the Eastern District of Missouri.
Company board chairman Mark Jensen admitted this drastic step was necessary “to maximize the value of its business” after exhausting other options.
“We are committed to continuing to safeguard customer data and being transparent about the management of user data going forward, and data privacy will be an important consideration in any potential transaction,” he added.
The move comes as the once-pioneering genetic testing company faces financial ruin following a catastrophic 2023 data breach that compromised nearly 7 million customers’ information.
The bankruptcy filing coincides with the departure of co-founder and CEO Anne Wojcicki, who stepped down from her leadership position but remains on the board.
“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,” she stated.
In a surprising twist, Wojcicki now plans to acquire the company herself as an independent bidder. Her latest offer valued the once-mighty tech giant at just $11 million.
This collapse follows a series of devastating blows to the company. Beyond the data breach, 23andMe was forced to settle related lawsuits for $30 million.
The company has already laid off 200 employees, nearly 40% of its workforce, and is halting the development of its therapeutic products.
Now, 14 million Americans who trusted the company with their most personal biological information are concerned about who will gain access to their genetic data.
The California attorney general has advised all users to immediately request the deletion of their data and the destruction of their genetic material samples.
This unprecedented warning underscores the complete lack of confidence in the company’s ability to protect sensitive information during bankruptcy proceedings.
Making matters worse for consumers, federal health privacy laws like HIPAA do not protect customers of direct-to-consumer companies like 23andMe, exposing millions to potential privacy violations.
Critics have long warned about the national security implications of companies collecting mass genetic data with minimal accountability.
“Interestingly, once upon a time, the Pentagon told military personnel not to use these at-home DNA kits because it was concerned about national security,” noted I. Glenn Cohen, a legal expert familiar with the case.
This collapse validates concerns that American genetic information could end up in the wrong hands due to corporate mismanagement.
23andMe’s privacy policy allows data sharing with service providers and explicitly reserves the right to transfer customer data in case of sale or bankruptcy.
With the company now securing debtor-in-possession financing of up to $35 million from JMB Capital Partners to continue operations during bankruptcy, American consumers have limited recourse to protect their genetic information.
Copyright 2025, DailyEmailNews.com
