The genetic test company 23andme, which was a leader in the DNA test for consumers, provided for bankruptcy of Chapter 11 amid financial conflicts, leadership and increasing concerns about the safety of its genetic customer data. Let’s take a look at the effects of this development and some steps to protect your sensitive information.
23andme Saliva Collection Kit (23andme) (Cyberguy “Knutsson)
Fall 23andme: a timetable for challenges
The 23 billion dollars in 2021 was distinguished from a bankruptcy in 2025 with large obstacles.
- Data breach in 2023: A Electronic attack Hereditary and personal data is exposed to approximately 7 million users, which leads to lawsuits and reputation damage.
- Driving Driving: CEO Ann Wagiki resigned as part of the bankruptcy declaration, as she put herself as a potential buyer of the company.
- Financial decrease: The shares of the company decreased from more than $ 300 per share to less than one dollar, reflecting the deterioration of financial health.
- Manpower discounts: In November 2024, 23andme recorded 40 % of its employees as part of restructuring efforts.
- Discipline and sale of bankruptcy: On March 23, 2025, 23andme began the voluntary semester procedures in the American Banking Court of Missouri to facilitate a sale aimed at maximizing the value of its business. The company intends to continue its normal operations during this process and confirmed that there will be no changes to how to store, manage or protect customer data.
Despite these challenges, the company stated that submitting its bankruptcy will not affect how it is managed or protects the customer data. However, concerns about selling their potential assets, including sensitive genetic information, remain.
23andme Saliva Collection Kit (23andme) (Cyberguy “Knutsson)
The 23andme board of directors seeks to increase the value through the sale process subject to the supervision of the court
“After a comprehensive evaluation of the strategic alternatives, we decided that the sale that is supervised by the court is the best path forward to increase the value of the work,” said Mark Jensen, Chairman of the Special Committee of the 23ndme Board of Directors. “We expect the process to be supervised by the court will enhance our efforts to face the operational and financial challenges we face, including more costs in costs, resolving legal obligations and rental. We believe in the value of our employees and our assets and we hope that this process will allow people to reach people and benefit from the human genome to live on for customers.”
“We would like to thank our employees for their dedication to the 23ndme mission. We are committed to supporting them during our movement during the process. In addition, we are committed to continuing to protect customer data and transparency about user data management to move forward, and the specificity of data will be important in any possible treatment.”
23andme Saliva Collection Kit (23andme) (Cyberguy “Knutsson)
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What happens to your genetic data during bankruptcy?
When you are a company like 23andme Disciplinary filesIts assets, including customer data, can become part of the sale. While privacy laws in some states, such as California’s genetic information privacy lawIt requires clear approval before transferring genetic data to a new owner, the risk of misuse or unauthorized access remains.
23ndme assured customers that any buyers will be asked to comply with the applicable privacy laws. However, genetic data is one of the valuable assets that can be exploited if not sufficiently protected.
In addition, just a week and a half ago, 23andme updated the terms and conditions it reviewed. They have added an important legal disclosure that could prevent an individual from filed a lawsuit with expectations from the court’s trial. Instead, unless you cancel the subscription by notifying 23andme within 30 days of first use, you are automatically obligated to the new terms that force the parties to the arbitration path for any legal avenues that can arise now or in the future.
I strongly urge you to protect your rights by sending an email to Charbitrationophutout@23andme.com of a clear notification that you intend to cancel the subscription to arbitration. Make sure to use your email address associated with your 23ndme account. This will be the first thing you must do in my next steps that you may want to take to protect your rights and privacy now.
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Steps to protect your genetic data
If you are a 23ndme user or consider using similar services, here are steps that you can take to protect your sensitive information and protect your data from potential misuse or theft.
1) Cancellation of the subscription from the arbitration: If you want to keep your right to sue the company in the event of future problems, cancel the participation of arbitration agreements by sending your notice to withdraw from the arbitration CharbitrationOptout@23andme.com Within 30 days of first use.
2) Review of privacy preferences: Regularly verify privacy settings and share your data to ensure their compatibility with your comfort level.
3) Reducing research participation: Disable participation in search initiatives or product development if you are concerned about how to use your data.
4) Download and secure your data: Before thinking about deleting the account, download the genetic record and store it safely on an encoded device or a cloud service.
5) Request to delete data: If you no longer want to store your data with 23andme, ask to delete it with your account settings. Make sure you are also asking to destroy any physical samples.
6) Using strong passwords and multi -factor authentication: Creating unique and complex passwords for each account and your devices is necessary. Avoid reusing passwords through multiple accounts; This type of password reuse was a factor in recent times 23andme data breach. Enable the authentication Check the best password managers that experts have reviewed for 2025 here.
7) Monitor suspicious activity and the use of identity theft protection: Genetic data leakage can steal identity or medical fraud. Consider subscribing to the service of protecting identity theft that monitors personal information, such as the social security number, your phone number and e -mail, and alert you if this data is found on the dark web. Some identity theft services also include up to one million dollars in securing identity theft to cover losses and legal fees and the fraud solution team with a US -based case manager to help you recover any stolen assets or identity. See the recommendations of my experts here: The best ID protection protection services for 2025 here.
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23DME bankruptcy is a warning story about the risks associated with the participation of sensitive genetic information. While the company pledged to maintain privacy criteria during this troubled period, consumers should remain vigilant. By controlling your data now, either with enhanced privacy settings or deletion, you can better protect yourself from possible use of use in unconfirmed times.
Do you think that genetic test companies are doing enough to protect your data in the face of financial instability and potential bankruptcy? Let’s know through our writing in Cyberguy.com/contact.
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