DNA testing company 23andMe files for bankruptcy amid financial struggles & data security
23andMe, a DNA and genetics testing company, has filed for Chapter 11 bankruptcy protection in the U.S. to initiate the sale of its assets. The move follows ongoing uncertainty regarding its business model and concerns about the security of its extensive customer data. Despite these developments, the company intends to maintain its operations during the sale process, with no alterations in data storage, management, or protection protocols.
In conjunction with the bankruptcy filing, co-founder and CEO Anne Wojcicki announced her departure to become an independent bidder for the company. 23andMe, known for its saliva-based test kits, once reached a valuation of $6 billion but has struggled financially, never achieving profitability since its founding in 2006 and going public in 2021.
The company's challenges were compounded by a recent legal settlement over a data breach in 2023, which compromised the privacy of nearly seven million customers. To support operations during the bankruptcy proceedings, 23andMe has secured $35 million in debtor-in-possession financing from JMB Capital Partners. The company is actively seeking new ownership to facilitate its sale and future endeavors.
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Related news
External links
- 23andMe Initiates Voluntary Chapter 11 Process to Maximize Stakeholder Value Through Court-Supervised Sale Process23andMe • Official source
- DNA testing company 23andMe files for bankruptcy protection, CEO resignsTechCrunch
- Genetic testing company 23andMe declares bankruptcyArs Technica
- 23andMe is bankrupt and about to sell your DNA, here's how to stop that from happeningTechRadar
- DNA testing firm 23andMe files for bankruptcy as demand dries upReuters
- 23andMe Files for Bankruptcy Amid Concerns About Security of Customers’ Genetic DataThe New York Times
Comments
And by selling its assets, it also means all user data (because data worth money). It's another good reminder to think twice before giving any data, and more seriously about giving genetic data because emails and passwords that be changed, not the data you body produces (the same that it will continue to produce for decades). And when 23andMe says "Any Buyer [of genetic data owned by 23andMe] will be Required to Comply with Applicable Law with Respect to Treatment of Customer Data", giving the consistent lack of decent data protection laws in US, it's pretty much too late to get your data back.