23andMe Goes Bankrupt: Users Urged to Delete Their Data
On the heels of CEO Anne Wojcicki stepping down, it seems as though 23andMe has also filed for bankruptcy. Unfortunately, this spells a bit of disaster for the US genetic testing company, as back in 2023, they also suffered a major data breach.
23andMe Files For Bankruptcy
It seems as though 23andMe has filed for bankruptcy in order to help sell itself. This is a voluntary Chapter 11 proceeding in the U.S. Bankruptcy Court for the Eastern District of Missouri to facilitate a sale that will “maximize the value of the business.”
CEO and co-founder, Anne Wojcicki, has been pushing for a buyout since April 2024. But, the board has refused to allow it to go through. According to a post on X, she still plans to make another bid – even throughout the bankruptcy process.
23andMe Data Breach
Back in 2023, the only 23andMe news that was at the forefront of people’s minds was the massive data breach that affected nearly 7 million people. Of course, there’s the main concern: the loss of people’s privacy. But, as for the company, they’re probably more concerned with the fact that revenue dropped significantly as 15 million people rushed to delete their DNA data from the company’s archives. No doubt, Google saw a lot of hits for “23andMe delete data.”
On the heels of the data breach, the 23andMe lawsuit was settled for a whopping $30 million to the nearly 7 million people whose personal data was exposed. They also agreed to provide three years of security monitoring to those affected.
The chaos surrounding the breach doesn’t end there. In addition to a class action lawsuit, the company is also facing more than 50 other lawsuits since the hack took place. The class action lawsuit was filed amidst allegations that 23andMe did not notify people of the data breach in a timely fashion.
Fighting for Survival
Hopefully, the sale will create some sort of traction for the company. But, they’ve certainly been in survival mode for quite some time now. The testing firm has already cut back 40% of its workforce, laying off 200 people.
They also stopped the development of new therapies back in November of last year. One of the other proposals Wojcicki had was to turn 23andMe into a drug developer.
According to LSEG data, the market value of 23andMe should be $50 million. Yet, the latest offer in the buyout process was a mere $11 million. And that’s lightyears away from the company’s $3.5 billion market capitalization when it first went public in 2021.
Delete Your Data
If you or anyone you know has ever ordered a 23andMe DNA test, most security professionals will tell you to delete your account. Even still, they don’t believe your data will be fully erased. But, it’s still a worthwhile precaution before the sale takes place. Here are the steps:
Log in
Settings
23andMe Data
View
Delete Data
Permanently Delete Data
After taking these steps, the company will email you, asking you to confirm your request, to which you must respond. It’s not a failsafe plan, but at least it can give you a little bit more peace of mind.
Who Can We Trust?
It seemed like such a lovely concept. After all, we’re all tied to our family roots and want to know more about “who we are.” Still, it seems we can’t trust certain companies that don’t take every measure to safeguard our personal data.
Let’s see what happens as the 23andMe sale pushes forward. Hopefully, everyone who has ever engaged their services will remain safe. Keep coming back as we monitor this headline and other data breaches, in the hopes that we will all stay safe together.