California Attorney General Rob Bonta warns 15 million 23andMe customers to delete their genetic data immediately as the once-leading genetic testing company files for bankruptcy, raising serious privacy concerns about what happens to sensitive DNA information during financial collapse.
Top Takeaways
- 23andMe has filed for Chapter 11 bankruptcy protection after its stock price plummeted from over $320 in 2021 to less than $2 today
- California’s Attorney General is advising all customers to delete their genetic data amid concerns about how the sensitive information will be handled during bankruptcy proceedings
- The company suffered a major data breach last year affecting 6.9 million customers, further damaging consumer trust
- 23andMe’s privacy policy allows for the transfer of personal information if the company is sold
- Customers can permanently delete their data by accessing their account settings and following the data deletion process
Financial Collapse of a DNA Testing Giant
Once valued at $6 billion and considered a pioneer in consumer genetic testing, 23andMe has experienced a dramatic fall from grace. The company, which has collected genetic data from more than 15 million customers who paid around $200 for saliva-based DNA analysis, filed for Chapter 11 bankruptcy protection after its stock value cratered. Financial documents reveal the company lists assets and liabilities between $100 million and $500 million, marking a stunning reversal for a company that was once at the forefront of personalized medicine and ancestry research.
The company’s troubles accelerated after unsuccessful expansion into drug development and research, leading to a 40% reduction in workforce last November and the closure of its pharmaceutical development division. Co-founder and CEO Anne Wojcicki has resigned while CFO Joe Selsavage steps in as interim CEO. Despite securing $35 million in emergency financing, the company’s future remains uncertain.
23 and Me is going bankrupt. Better delete your data if you used the service. https://t.co/N6yB0Sl3Zb
— Andrew G. Huff, PhD, MS 🇺🇸 (@AGHuff) March 24, 2025
Privacy Concerns Prompt Official Warning
California Attorney General Rob Bonta issued a formal “consumer alert” regarding the “trove of sensitive consumer data 23andMe has amassed.” The unprecedented warning from a state attorney general highlights the serious nature of the potential privacy risks. California’s Genetic Information Privacy Act and Consumer Protection Act give residents legal rights to control their genetic information, including the right to have it permanently deleted upon request.
“Given 23andMe’s reported financial distress, I remind Californians to consider invoking their rights and directing 23andMe to delete their data and destroy any samples of genetic material held by the company,” Bonta said in a statement Friday.
The concern stems partly from 23andMe’s privacy policy, which explicitly allows for the transfer of personal information if the company changes ownership. With bankruptcy proceedings underway, genetic data from millions of Americans could potentially be sold or transferred to new owners. Compounding these concerns was a major data breach last year that affected 6.9 million customers and led to a $30 million settlement, further eroding trust in the company’s data security practices.
Health and Discrimination Risks
Privacy experts warn that genetic data presents unique risks compared to other types of personal information. DNA can reveal intimate details about health conditions, ancestry, and even predispositions to future diseases. In the wrong hands, this information could potentially lead to discrimination in insurance, employment, or other areas of life, despite some legal protections against such practices.
What makes 23andMe’s situation particularly concerning is that the company holds genetic data not only of its direct customers but also information that can reveal details about their relatives. This means the privacy implications extend well beyond the 15 million people who voluntarily submitted their samples, potentially affecting tens of millions more who never consented to having their genetic information stored in a corporate database.
How to Delete Your Data
For concerned customers, Attorney General Bonta has provided specific instructions on how to permanently delete genetic data from 23andMe’s systems. Customers need to log into their accounts, access the “settings” menu, navigate to the data section, and select the “permanently delete data” option. The process requires email verification to confirm the deletion request.
Despite its financial troubles, 23andMe maintains it is committed to safeguarding customer data and transparency in data management. The company will continue operating during the bankruptcy proceedings, and customers can still access their accounts and information. Whether the company can regain consumer trust and emerge from bankruptcy as a viable business remains to be seen, but the unprecedented warning from California’s top law enforcement official signals the serious nature of the privacy concerns surrounding genetic testing in an era of corporate instability.
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