Table of Contents
- Understanding 23andMe Files for Bankruptcy
- Why Did This Happen?
- What Happens to Your DNA Data Now?
- Steps Readers Can Take
- Looking Ahead: What’s Next?
Understanding 23andMe Files for Bankruptcy
23andMe files for bankruptcy, a headline that’s sent ripples through the 15 million people who’ve trusted the company with their DNA. The once-thriving genetic testing firm, valued at $3.5 billion during its 2021 public debut, filed for Chapter 11 bankruptcy protection on March 23, 2025. This move aims to restructure its finances and find a buyer while continuing operations, but it’s left many wondering what’s next for their personal information.
As of March 24, 2025, the past 48 hours have underscored the urgency of this shift. The company’s co-founder and former CEO stepped down but remains on the board, expressing intent to bid for its assets. For general readers, this isn’t just a business story—it’s a personal one. Here’s what you need to know and do.
Why Did This Happen?
The journey to 23andMe files for bankruptcy didn’t happen overnight. Launched in 2006, the company soared by offering affordable DNA kits to explore ancestry and health risks. But recent years brought challenges. Sales of its one-time-use kits waned as customers didn’t see a need to repurchase, and efforts to pivot into subscriptions or drug development faltered.
A major blow came in 2023 when a data breach exposed 6.9 million users’ information, sparking lawsuits and a $30 million settlement. By November 2024, 23andMe slashed 40% of its workforce—over 200 employees—and shut down its therapeutics division. Its stock, once soaring, plummeted to under $1 by March 24, 2025. Bankruptcy became the next step to manage debts between $100 million and $500 million, mirroring its estimated assets.
What Happens to Your DNA Data Now?
With 23andMe files for bankruptcy, the fate of 15 million users’ genetic data is a top concern. Chapter 11 allows the company to sell assets—including its DNA database—to pay creditors. The privacy policy already states that data could be transferred in a sale, merger, or bankruptcy, raising questions about where it might end up.
Potential buyers could include biotech firms, research entities, or even the former CEO herself, who’s signaled interest in reacquiring the company. While 23andMe insists there’s “no change” to how it stores or manages data, the new owner will dictate future policies. Some states, like California, offer legal rights to request data deletion, but federal protections remain patchy. For now, your DNA could be part of an auction unfolding over the next 45 days.
Steps Readers Can Take
23andMe files for bankruptcy doesn’t mean you’re powerless. Here are practical steps to navigate this moment:
- Check Your Account Status
Log into your 23andMe account. Confirm what data you’ve shared—ancestry, health reports, or research consent. This helps you understand what’s at stake. - Request Data Deletion
You can ask 23andMe to delete your genetic data and destroy your saliva sample. Go to Settings, select “Permanently delete data,” and follow the prompts. You’ll get an email to confirm. Act quickly—bankruptcy might complicate this later. - Revoke Research Consent
If you opted into research, withdraw permission. In Settings, adjust your preferences to stop sharing with third parties. Note: past research can’t be undone, but this limits future use. - Stay Informed
Follow updates on the bankruptcy process. The company aims to solicit bids soon, and public announcements will reveal the buyer. Knowing who takes over can guide your next moves. - Explore State Rights
In places like California, laws let you demand data deletion. Check your state’s attorney general website for guidance. For example, California’s AG urged residents to act before the filing.
Looking Ahead: What’s Next?
23andMe files for bankruptcy marks a turning point, but not the end. The company plans to keep running during the sale, meaning your account remains active—for now. The next 45 days will be critical as bids roll in, potentially reshaping how your data is handled. A buyer committed to privacy could maintain the status quo, while a less scrupulous one might exploit it.
For readers, this is a wake-up call about trusting companies with sensitive info. Genetic data is unique—it’s yours forever, unlike a password you can change. As this unfolds, staying proactive and informed is your best defense. The fallout from 23andMe files for bankruptcy could set a precedent for how personal data is treated in corporate collapses.