23andMe filed for bankruptcy—and now its most valuable asset may be the deeply personal genetic information of over 15 million customers. A judge just cleared the path for the company to try to sell that data, raising privacy concerns and public backlash.
Key Facts:
- 23andMe filed for Chapter 11 bankruptcy on March 23 after failing to find a buyer.
- The company has never been profitable since going public in 2021.
- A bankruptcy judge in St. Louis allowed the company to proceed with a potential sale of customer genetic and ancestry data.
- Definitive offers from buyers are due by May 7, with a final court hearing scheduled for June 17.
- Consumer advocates and the U.S. Trustee’s office are pushing for a privacy ombudsman to oversee the sale.
The Rest of The Story:
Once considered a pioneer in consumer genetics, 23andMe is now in financial ruin.
Despite collecting DNA from over 15 million customers, the company failed to turn a profit after going public.
Now, its most valuable asset isn’t its technology—it’s the sensitive genetic and ancestry information it collected.
The court has given the green light for a potential sale of this data, though concerns remain.
Bankruptcy Judge Brian C. Walsh has called for a modest delay in the process to ensure creditors can weigh in.
Meanwhile, the U.S. Trustee’s office wants a privacy ombudsman appointed to protect customer information, although the judge hasn’t yet ruled on that.
Customers are panicking.
State attorneys general have issued alerts urging people to delete their data, leading to heavy traffic on 23andMe’s website.
The company claims its privacy policies still apply, and users can delete their information from the database, but that hasn’t eased concerns.
We @cyber_health_co have helped hundreds of people delete their data from 23andMe since 2022.
Here is our step-by-step guide. pic.twitter.com/Xv8U6jz5ux
— Jeremy Banon (@jeremybanon) March 24, 2025
Commentary:
This is what happens when a company builds its entire business model on harvesting consumer data and then runs out of options.
23andMe’s core problem isn’t just financial mismanagement—it’s that once customers get their ancestry results, there’s little reason to stick around.
The subscription model never made much sense in the long term.
Now, as the company tries to salvage some cash for creditors, it’s treating people’s most personal information—genetic material—as a bargaining chip.
No matter what their privacy policy says, selling DNA data to unknown third parties is a line many Americans won’t tolerate.
The fact that customers are now rushing to delete their data before it hits the auction block should be a wake-up call.
People trusted this company with intimate details about their heritage and health.
That trust has been broken.
Even worse, the legal framework around this kind of data sale is vague.
A privacy ombudsman might help, but it’s no guarantee.
Once your data is out there, you can’t take it back.
And even if it’s deleted from the company’s active database, who’s to say backups don’t still exist somewhere?
Going forward, this case should serve as a warning: think twice before handing over your DNA to any company.
No matter how sleek the website or friendly the marketing, if a business holds your genetic code, they can eventually sell it when times get tough.
If you’ve used 23andMe in the past, now’s the time to act.
Delete your data, opt out of any research programs, and demand proof that your information is gone.
Otherwise, your genetic profile could soon be in the hands of people you never agreed to share it with.
The Bottom Line:
23andMe’s bankruptcy is more than a financial failure—it’s a massive breach of consumer trust.
The company is now attempting to sell off personal genetic data to the highest bidder, sparking serious privacy concerns.
If you’re a former customer, your best move is to delete your data immediately.
This debacle is a strong reminder that DNA testing services may offer short-term curiosity at the cost of long-term consequences.
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