23andMe’s Shocking Bankruptcy: What You Need to Know About the Data Deletion Scandal

On March 23, 2025, 23andMe, the well-known genetic testing company, filed for Chapter 11 bankruptcy, citing weak demand for its ancestry testing kits and ongoing financial struggles. This announcement has sent shockwaves through the biotech industry and raised significant concerns about the future of genetic data privacy. With the company now navigating bankruptcy proceedings, many are left wondering what this means for their personal information and the broader implications for consumer trust in genetic data management.

The bankruptcy comes on the heels of a major data breach in 2023, which compromised the accounts of approximately 6.9 million customers. This incident not only highlighted vulnerabilities in data security but also sparked serious questions about how companies handle sensitive genetic information. In light of these events, experts are urging users to delete their genetic data from the platform to safeguard their privacy as the company prepares to sell its assets.

Following the bankruptcy announcement, 23andMe’s stock price plummeted from a staggering $300 per share at its peak to a mere 79 cents. This drastic decline reflects the company’s inability to adapt to changing market demands, particularly after its shift to a subscription-based model failed to gain traction. As interim CEO Joe Selsavage takes the helm following the resignation of co-founder and CEO Anne Wojcicki, the company faces an uphill battle to recover from its financial woes.

The bankruptcy process is expected to last about 45 days, during which 23andMe will seek bids from potential buyers. The company has indicated that any acquirer must comply with applicable privacy laws regarding customer data, which raises further questions about the future handling of genetic information. Legal experts have pointed out that existing federal laws offer limited protection for genetic data, underscoring the urgent need for stronger consumer privacy regulations.

In light of these developments, customers are advised to stay informed about the status of their data. While 23andMe does allow users to delete their accounts and data, the process can be cumbersome, requiring users to log in and confirm their deletion request via email. This complexity can deter users from taking action, leaving their sensitive information vulnerable.

The scandal surrounding 23andMe has broader implications for the biotech industry. As the company has previously shared anonymized data with pharmaceutical firms, concerns arise about how user data may be utilized in the future, especially if the company changes ownership. At least 11 U.S. states have enacted laws that grant consumers more control over their genetic data, allowing them to request deletion and requiring warrants for law enforcement access. However, the effectiveness of these regulations remains to be seen.

Consumer advocacy for stronger privacy laws is gaining momentum in light of this scandal. As the public becomes increasingly aware of the risks associated with genetic data storage, calls for legislative action are growing louder. The situation with 23andMe serves as a stark reminder of the need for comprehensive regulations that protect sensitive information in the digital age.

In conclusion, 23andMe’s bankruptcy and the associated data deletion scandal raise critical questions about the future of genetic data privacy. As the company seeks a buyer and navigates the complexities of bankruptcy, customers must take proactive steps to protect their personal information. The unfolding events highlight the necessity for stronger privacy laws to safeguard consumer data and restore trust in the biotech industry. As we move forward, it is crucial for consumers to remain vigilant and advocate for their rights in an increasingly data-driven world.