California Attorney General Rob Bonta is urging individuals to remove their genetic data from 23andMe's website to protect their information following the company's recent bankruptcy filing. The genetic testing company, which rose to a market value of nearly $6 billion after its market debut in 2021, announced it had filed for voluntary bankruptcy on March 23, prompting fears about data security amongst its millions of users.
23andMe, which services over 15 million customers globally, is seeking court approval to sell off most of its assets as part of the bankruptcy process. Reports indicate that the company has seen a drastic decline in consumer demand for its testing kits, alongside a reported 7% decrease in revenue, translating to a loss of $174 million in the first nine months of the fiscal year 2024-2025.
Bonta’s appeals come on the heels of a significant data breach that exposed genetic information and personal data of millions, raising alarms among clients about their privacy and safety. “I am urging Californians to consider their own privacy rights. We also want 23andMe to delete personal user data and destroy all genetic test samples that the company has stored,” Bonta stated, asking for more stringent data protections.
The company’s bankruptcy filing was not entirely unexpected, as it struggled with a tarnished reputation following investigations by data protection authorities in the UK and Canada concerning earlier data breaches. Notably, hackers accessed personal account data from approximately 14,000 23andMe accounts over five months, targeting users of Jewish and Chinese descent, which exacerbated concerns about potential misuse of sensitive information.
This latest breach has prompted 23andMe to take action, engaging cybersecurity experts to investigate the circumstances surrounding the data leaks and plan for future security improvements. Furthermore, the company plans to allocate $30 million to improve data security and compensate those affected by the breach.
While the company aims to rectify its data protection shortcomings, Bonta asserts that consumers should take personal precautions. He emphasized the importance of deleting any personal and genetic information stored with 23andMe before potential bankruptcy proceedings could complicate access to these records.
“The security and privacy of users' data should be paramount,” Bonta went on to say. “Companies that handle personal information must ensure comprehensive audits are performed to protect users from future breaches.”
The saga surrounding 23andMe reflects broader concerns in the data industry as consumers grow increasingly aware of the potential vulnerabilities associated with genetic data sharing. As the situation develops, Bonta and other officials are advocating for more robust regulations and safeguards to ensure that user data remains private and secure.
As 23andMe navigates its bankruptcy proceedings, individuals who have submitted samples for genetic testing are left grappling with uncertainty regarding the fate of their personal information. The future of the company—and the security of its customers' data—remains in limbo as legal and financial matters unfold.
