23andMe Files for Bankruptcy: What Happens to Your DNA?

Genetic testing company 23andMe has filed for bankruptcy protection, leaving millions of customers questioning the fate of their sensitive DNA data. The firm, once valued at almost $6 billion, faces lawsuits and regulatory scrutiny over privacy breaches as experts warn users to secure their genetic information. (Source: reuters.com)

From Boom to Bust: The 23andMe Bankruptcy

23andMe filed for Chapter 11 bankruptcy on March 23, a legal process that lets companies restructure debts while attempting to stay operational and potentially find a buyer. CEO and co-founder Anne Wojcicki is stepping down from the board. (Source: theguardian.com)

The company's downfall follows years of declining sales and a 2023 data breach that exposed nearly 7 million users' ancestry and health reports. Critics argue 23andMe overextended by prioritizing medical research partnerships over core consumer services like ancestry reports.

Once a pioneer in at-home DNA kits, 23andMe struggled to compete with rivals like AncestryDNA, which focused on user-friendly genealogy tools. Its shift toward health data analysis, such as marketing reports on cancer risks or medication compatibility, failed to attract enough paying subscribers.

Legal troubles compounded the crisis. Over a dozen lawsuits accused the company of misleading users about data security after hackers accessed profiles through recycled passwords. While 23andMe claims no DNA sequences were stolen, leaked ancestry details can still reveal sensitive family relationships. (Source: bleepingcomputer.com)

Why Your DNA Data Is at Risk

Privacy experts warn that bankruptcy could complicate data ownership, as 23andMe's genetic databases may be sold to pay creditors. While the company claims user data remains protected, its privacy policy allows sharing anonymized data with third parties unless users opt out. 

Anonymized data strips names but retains genetic markers, which researchers or advertisers might use. For example, a pharmaceutical company could buy the data to study hereditary diseases - a practice 23andMe previously defended as advancing science. Critics counter that users rarely understand how their DNA could be monetized.

How to Delete Your 23andMe Data

Deleting your data from 23andMe's platform is the only guaranteed way to prevent future misuse and California's attorney general has encouraged consumers to do just that. The process involves logging into your account and navigating to Settings > 23andMe Data > View > Delete Data > Permanently Delete Data. (Source: wired.com)

What Bankruptcy Means for the Genetic Testing Industry

23andMe's collapse raises questions about the sustainability of consumer DNA testing. The industry relies heavily on selling data partnerships, but growing privacy laws such as California's Genetic Information Privacy Act are limiting this revenue stream.

Smaller competitors now face investor skepticism. Analysts say consumers increasingly view genetic testing as a privacy gamble rather than a novelty.

Medical researchers also stand to lose. 23andMe's databases were a goldmine for studying rare diseases, with over 80% of users opting into research. If the data is fragmented during a sale, long-term studies on Alzheimer's or Parkinson's could be disrupted.

How to Protect Your Information

Experts warn that users should delete their 23andMe accounts immediately, despite the company's assurances. Some Cybersecurity experts recommend using encrypted email for deletion requests and saving confirmation receipts in case of disputes. Those who purchased DNA kits but never activated them can discard the physical sample - it's unusable without an account link.

For those keeping accounts, disabling "research participation" in settings halts data sharing. However, this doesn't retroactively remove information already provided to partners. Legal experts suggest checking state laws: California and Virginia allow residents to demand full data deletion under privacy statutes.

Lawmakers are pushing for stricter rules on biometric data, citing 23andMe's case as a cautionary tale. Meanwhile privacy advocate privacy advocate Meredith Whittaker wrote: "A breach here doesn't just affect one person, but entire family trees."

What's Your Opinion?

Should companies like 23andMe be allowed to sell anonymized DNA data, even for medical research? Would you use a genetic testing service if there were stronger laws protecting biometric data? How can users balance the benefits of DNA insights with privacy risks in an era of frequent data breaches?