23ANDME BANKRUPTCY IGNITES PRIVACY WORRIES OVER MILLIONS IN DNA DATA

In a quiet South San Francisco office, a biotech outfit that once promised to unlock ancestry secrets through a spit tube has hit a financial wall, thrusting the genetic records of millions into an uncertain spotlight.

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This week, 23andMe filed for Chapter 11 bankruptcy protection in a Missouri federal court, aiming to sell its assets—including a trove of DNA from 15 million customers—after years of cash struggles and a bruising data breach.

For those who mailed in their saliva, it's a sobering turn, as a firm once pegged at $6 billion now scrambles for a buyer amid a storm of privacy concerns.

This filing isn't a small blip. The firm's collapse follows a 2023 hack that exposed nearly 7 million users' records, a blow that dented trust and piled on lawsuits.

Now, with bankruptcy looming, 23andMe's privacy policy looms large—it states that customer DNA and personal details could shift to a new owner in a sale, a clause that's got state officials and security experts sounding alarms.

The stakes are high, with millions of genetic profiles potentially up for grabs in a market where such info could fetch a hefty price.

The tale begins in 2006, when 23andMe launched with a bold pitch—send in a saliva sample, get a peek at your roots and health risks. It boomed, selling over 12 million kits and building a database that ballooned to 15 million users.

But the shine faded—sales slumped, the one-and-done test model faltered, and a $30 million settlement from that 2023 breach added weight. CEO Anne Wojcicki stepped down from leadership this week, staying on the board as the firm hunts a lifeline through bankruptcy.

DNA ON THE AUCTION BLOCK

Bankruptcy isn’t just paperwork—it’s a reshuffle. Under Chapter 11, 23andMe aims to offload assets to keep afloat, and its crown jewel is that genetic vault. The firm’s U.S. privacy statement lays it out—personal info, including DNA, may transfer in a sale, bound by the same terms under a new owner.