23andMe DNA testing company files for bankruptcy: privacy concerns emerge for 15M customers

DNA testing giant 23andMe has filed for Chapter 11 bankruptcy protection, stirring privacy concerns for over 15 million customers who entrusted the company with their genetic information. Once a prominent player in the direct-to-consumer biotech industry, 23andMe's struggles with weak demand for ancestry kits and a significant data breach in 2023 have led to its financial collapse.

As the company seeks a buyer, consumer privacy experts are raising alarms about the fate of sensitive genetic data and how customers can protect themselves moving forward.

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23andMe files for bankruptcy: impact on privacy and customers' genetic data

23andMe, the Silicon Valley biotech company that revolutionized DNA testing for consumers, filed for bankruptcy on March 24, 2025. The company, known for offering direct-to-consumer ancestry and health risk testing kits, has faced multiple challenges in recent years, including financial struggles and a damaging data breach. With a bankruptcy filing in place, questions loom about the future of the genetic data from its more than 15 million users.

Founded in 2006 by Anne Wojcicki, 23andMe became a household name thanks to its popular DNA testing kits, which allowed users to learn about their ancestry, health risks, and genetic traits. At its peak, the company had a market valuation of $6 billion, but in recent years, demand for the company's products has waned. The company’s stock value, which once soared to $320 per share in 2021, has plummeted to below $1 as of 2025.

Privacy concerns following the 23andMe bankruptcy filing

The bankruptcy filing has reignited concerns about the security of personal data. Following a major 2023 data breach, which compromised the personal information of nearly 7 million users, privacy advocates are raising alarms over the future of customers' sensitive genetic data. Experts worry that the data, stored by 23andMe, could be sold or transferred to another entity without proper safeguards, leaving customers vulnerable.

Anne Wojcicki, 23andMe's co-founder and CEO, has announced her resignation following the bankruptcy filing. In her farewell message, Wojcicki acknowledged the challenges the company faced but expressed confidence in its future. She also hinted at the possibility of bidding to buy the company back and taking it private.

How 23andMe customers can protect their data

In light of the bankruptcy, California Attorney General Rob Bonta and legal experts have urged customers to delete their genetic data from the company's database. While 23andMe has offered a process for users to remove their personal information, experts suggest that this may not fully resolve the concerns surrounding the data's future.

To delete your data from 23andMe:

1. Log into your 23andMe account.
2. Navigate to the “Settings” section of your profile.
3. Scroll down to "23andMe Data" and click "View."
4. From there, select the “Delete Data” option and confirm your deletion.

It’s also recommended that users destroy stored samples and withdraw consent for research if they are concerned about their data's use.

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What led to 23andMe's bankruptcy?

The company's financial downfall can be attributed to several factors.

• Decline in Demand for Ancestry Testing Kits: There has been a significant drop in demand for 23andMe's ancestry testing kits.
• Impact of 2023 Data Breach: A major data breach in 2023 severely damaged the company's reputation.
• Increased Market Competition: The market has seen a shift, with more companies offering similar DNA testing services, intensifying competition.
• Secured Financing for Operations: Despite the financial struggles, 23andMe secured $35 million in financing to continue operations during the bankruptcy process.
• Cost-Cutting Measures: To reduce costs, 23andMe has laid off a significant portion of its workforce.