• 23andMe filed for Chapter 11 bankruptcy, seeking a buyer for its assets amid declining demand.
• CEO Anne Wojcicki resigned, while the company has assured customers about the protection of their genetic data.
• California and New York Attorney Generals urge users to consider deleting their genetic data given privacy concerns.

23andMe, the renowned genetic testing company known for its popular DNA testing kits, has officially filed for Chapter 11 bankruptcy as of Reuters. The company is now looking for a buyer, raising concerns regarding the management of sensitive customer data. Since its market valuation peaked at approximately $6 billion in 2021, the company has faced serious financial challenges exacerbated by a significant data breach in 2023, which compromised the personal information of nearly 7 million users.

Anne Wojcicki, the co-founder and CEO, resigned shortly before the bankruptcy filing. She had been attempting to take the company private but faced multiple rejections from the board regarding her offers. "The best path forward to maximize the value of the business," said Board Chair Mark Jensen, indicating that the court-supervised sale process would allow 23andMe to continue operating effectively during this transition.

Despite the bankruptcy announcement, 23andMe has reassured its users that there will be no changes in how it stores, manages, or protects customer data. A spokesperson noted that any future buyer would be required to abide by applicable privacy laws. However, concerns linger regarding the privacy of genetic data, with California Attorney General Rob Bonta and New York Attorney General Letitia James urging customers to consider deleting their accounts.

The potential for a new owner to handle the sensitive genetic information of over 15 million customers is a major point of contention, especially given the company's history of collaboration with pharmaceutical companies to monetize its database. Privacy experts warn that while 23andMe currently adheres to certain legal standards about customer data, these could change under new ownership.

"Genetic data isn't just a bit of personal information — it is a blueprint of your entire biological profile," emphasized cybersecurity expert Adrianus Warmenhoven, highlighting the gravity of the situation as customers face the risk of their data being auctioned off as part of bankruptcy proceedings.

In light of these developments, users are encouraged to review their account settings and delete their data if they have concerns about privacy. Clear instructions for opting-out and revoking permissions for data sharing have been provided by various state officials, urging customers to take control of their genetic information post-bankruptcy.

You can follow the unfolding situation and read more at NPR.