Staff – March 26, 2025

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23andMe, the DNA genetics company, filed for Chapter 11 bankruptcy protection on March 23, 2025, in the U.S. Bankruptcy Court for the Eastern District of Missouri. This filing allows the company to restructure its finances and facilitate a sale process while continuing to operate its business as usual. Concurrently, Anne Wojcicki, the co-founder and CEO, resigned effective immediately but plans to remain on the board and participate as an independent bidder to potentially acquire the company during the bankruptcy process.

What Will Happen to Everyone’s DNA?

The fate of the genetic data belonging to 23andMe’s over 15 million customers is a significant concern tied to this bankruptcy. Here’s what is known and what could happen:

Current Status of Data:

23andMe has stated that there are “no changes to the way the company stores, manages, or protects customer data” during the bankruptcy process. This suggests that, for now, the data remains under the company’s existing privacy policies and safeguards.

Bankruptcy Sale Process:

Under Chapter 11, 23andMe’s assets—including its vast database of genetic information—will be part of a court-supervised sale. Potential buyers could include private companies, pharmaceutical firms, or even Anne Wojcicki herself if her bid succeeds. The buyer will determine how the data is used moving forward, subject to legal and contractual obligations.

Possible Outcomes:

Continued Operation: If Wojcicki or a buyer with similar intentions acquires 23andMe, the company might continue its current business model, using the data for genetic insights and research as per existing customer consents.

Data Transfer: A buyer, such as a pharmaceutical company, could acquire the data for drug development or other research purposes. Historically, 23andMe has partnered with firms like GlaxoSmithKline, which paid $300 million in 2018 to access data from 5 million customers for such purposes.

Privacy Risks: If sold to an entity with different priorities (e.g., law enforcement ties or foreign interests), the data could potentially be used in ways customers did not anticipate. A 2023 data breach, which exposed information from nearly 7 million users, already heightened privacy concerns.

Customer Options:

Individuals worried about their data’s future can log into their 23andMe accounts, download their genetic information, and request account deletion. Instructions from California’s Attorney General Rob Bonta, issued in response to the bankruptcy, recommend navigating to the account settings under “23andMe Data” to initiate this process. Deleting an account prevents future use of the data but doesn’t undo past research contributions.

Uncertainty:

The ultimate outcome depends on who buys 23andMe and their intentions. Privacy advocates, like the Electronic Frontier Foundation, have urged the company to avoid selling to entities that might misuse the data, such as law enforcement. However, the bankruptcy court will prioritize maximizing the company’s value, not necessarily customer preferences.

While 23andMe’s bankruptcy doesn’t immediately alter the status of customers’ DNA data, the sale process introduces uncertainty. Customers can take proactive steps to delete their data, but the broader implications hinge on the buyer and how they choose to handle this valuable genetic repository.