Users of 23andMe, a popular genetic testing service, are being advised to remove their personal data from the platform. This warning comes after the company filed for bankruptcy protection in the United States on March 23, 2025.
The situation is concerning for the roughly 15 million users who have shared their genetic information with 23andMe. The company, which has offered services related to ancestry and health risks, may soon sell its assets as part of the bankruptcy process. This includes the vast database of genetic information that users have provided over the years.
23andMe has faced significant financial challenges in recent years. After going public in 2021 with a valuation of $3.5 billion, the company struggled with declining sales and tough economic conditions. In October 2024, it laid off 40 percent of its workforce and is now at risk of being delisted from the NASDAQ due to its stock price falling below $1.
In an open letter to customers, 23andMe reassured users that the bankruptcy would not affect how they manage or protect customer data. The company stated that any potential buyer would have to comply with applicable laws regarding data treatment. However, some experts, including Arthur Caplan from NYU, are skeptical. Caplan pointed out that if someone buys the company’s assets, they might not be bound by the same promises regarding confidentiality.
The attorneys general of New York and California have urged users to take action and delete their data from the site. They are concerned about the potential risks associated with the sale of the company’s assets. Unlike the European Union, the U.S. does not have a comprehensive federal data privacy law, making it harder to ensure the protection of personal information.
23andMe has also faced criticism for its data security practices. In 2023, the company experienced a data breach that compromised the information of nearly 7 million users, resulting in a $30 million settlement in a class action lawsuit.
As part of its bankruptcy proceedings, 23andMe is entering a 45-day bidding period for its assets. Former CEO Anne Wojcicki has resigned and plans to submit her own bid to take the company private. She acknowledged the challenges the company has faced but remains optimistic about its future.
For users concerned about their data, 23andMe has provided a straightforward process for deletion. Users can log into their accounts, navigate to the settings, and follow the steps to permanently delete their data.
In summary, the bankruptcy of 23andMe raises important questions about data privacy and the future of genetic testing services. Users are encouraged to take action to protect their information as the company navigates this uncertain period.