The genetic testing company 23andMe has filed for bankruptcy, prompting people who’ve used the service and sent in DNA samples to be analyzed to wonder what will happen to their genetic data.
The company says the filing does not change how it stores, manages or protects customer data. But some privacy experts are recommending that people who have used 23andMe delete their data, given concerns not only about a potential buyer getting access to sensitive information, but also hackers who might take advantage of the upheaval to gain access to it.
‘‘What we’re witnessing with 23andMe is a stark wake-up call for data privacy,‘’ said Adrianus Warmenhoven, a cybersecurity expert at NordVPN. ‘’Genetic data isn’t just a bit of personal information — it is a blueprint of your entire biological profile. When a company goes under, this personal data is an asset to be sold with potentially far-reaching consequences."
What happened to 23andMe?
23andMe filed for Chapter 11 bankruptcy protection on Sunday. Anne Wojcicki, who co-founded the company nearly two decades ago and has served as its CEO, stepped down effectively immediately. The San Francisco-based company said that it will look to sell ‘’substantially all of its assets'' through a court-approved reorganization plan.
Wojcicki’s resignation comes just weeks after a board committee rejected a nonbinding acquisition proposal from her to take the company private.
Wojcicki still intends to bid on 23andMe as the company pursues a sale through the bankruptcy process. In a statement on social media, Wojcicki said that she resigned as CEO to be ‘’in the best position'' as an independent bidder.
23andMe says that filing for Chapter 11 bankruptcy protection will help facilitate a sale of the company, meaning that it’s seeking new ownership. The company said it wants to pull back on its real estate footprint and has asked the court to reject lease contracts in San Francisco and Sunnyvale, California and elsewhere to help cut costs. But the company plans to keep operating during the process.