DNA of 15 Million People for Sale in 23andMe Bankruptcy

23andMe filed for Chapter 11 bankruptcy Sunday, leaving the fate of millions of people’s genetic information up in the air as the company deals with the legal and financial fallout of not properly protecting that genetic information in the first place. The filing shows how dangerous it is to provide your DNA directly to a large, for-profit commercial genetic database; 23andMe is now looking for a buyer to pull it out of bankruptcy.

23andMe said in court documents viewed by 404 Media that since hackers obtained personal data about seven million of its customers in October 2023, including, in some cases “health-related information based upon the user’s genetics,” it has faced “over 50 class action and state court lawsuits,” and that “approximately 35,000 claimants have initiated, filed, or threatened to commence arbitration claims against the company.” It is seeking bankruptcy protection in part to simplify the fallout of these legal cases, and because it believes it may not have money to pay for the potential damages associated with these cases. 

CEO and cofounder Anne Wojcicki announced she is leaving the company as part of this process. The company has the genetic data of more than 15 million customers.

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