In a significant turn of events, 23andMe has filed for Chapter 11 bankruptcy after experiencing a devastating data breach and an influx of legal challenges. The consumer genetics company is now seeking a buyer for its business, brand, and the DNA profiles of more than 15 million users.
The bankruptcy filing, submitted on March 23, follows a tumultuous period triggered by a major cyberattack in October 2023, which compromised the personal and health-related genetic data of at least 7 million customers. The repercussions were immediate, leading to over 50 class action and state court lawsuits alleging that 23andMe did not adequately safeguard its users’ sensitive information.
23andMe files for bankruptcy, CEO steps down
To navigate its complex legal issues, 23andMe has entered Chapter 11—an action that also positions the company for potential acquisition. Court documents reveal the company carries debt owed to various entities, including pharmaceutical firms, health insurers, AI startups, marketing agencies, and pharmacies.
In response to the situation, California’s Attorney General Rob Bonta urged 23andMe users to take action last Friday. “Given 23andMe’s reported financial distress, I remind Californians to consider invoking their rights and directing 23andMe to delete their data and destroy any samples of genetic material held by the company,” he stated.
How to delete 23andMe data
With 23andMe officially on the market, the future ownership of the company—and the fate of millions of users’ genetic data—remains uncertain. The company has claimed to prioritize data privacy, yet its partnerships with pharmaceutical companies and the recent breach have raised significant concerns.
If you’re considering removing your data before a potential sale, you can easily do so through the 23andMe app:
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Go to the “23andMe Data” section
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Select “View,” then “23andMe Data”
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Choose “Permanently Delete Data”
Interestingly, on the deletion page, 23andMe provides a Q&A aimed at reassuring users, stating:
“If the company does change ownership in the future, your data will remain protected under the current 23andMe Privacy Policy unless you are presented with materially new terms, with appropriate advanced notice to review those material changes as required by law.”
This means your data stays private—until it doesn’t.
