DNA data of 15 million Americans up for sale? 23andMe bankruptcy row explained

Biotech giant 23andMe filed for Chapter 11 bankruptcy on Sunday

Updated on: Mar 25, 2025, 10:35:28 IST

By Yash Nitish Bajaj

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Biotech giant 23andMe filed for Chapter 11 bankruptcy on Sunday sparking DNA data breach concerns. The company's shares fell to as much as 50% on Monday after founder Anne Wojcicki resigned as CEO. As of now, 23andMe has not confirmed if it is looking to sell to interested bidders.

23andMe has collected DNA from saliva samples from more than 15 million customers (AFP)

Jason Koebler-led 404 Media viewed 23andMe's court documents and reported that the biotechnology company is looking to protect itself from the potential damage of dozens of legal cases about past data leaks. Hackers had obtained personal data of about seven million customers in October 2023. According to the 404 Media report, it included ‘health-related information based upon the user’s genetics’.

The company, in the documents, also stated that it has faced ‘over 50 class action and state court lawsuits' and ’approximately 35,000 claimants have initiated, filed, or threatened to commence arbitration claims'.

Data of 15 million Americans

23andMe has collected DNA from saliva samples from more than 15 million customers, Bloomberg reported. As per the report, the ‘personal information can now be sold as part of a court-supervised auction’.

The Wojcicki-led organization filed for Chapter 11, which refers to bankruptcy. 404 Media adds that it owes money to pharmaceutical companies, pharmacies, artificial intelligence companies, health insurance companies, and marketing companies.

As concerns about the data auction surfaced, 23andMe issued an open letter to customers. “Your data remains protected. The Chapter 11 filing does not change how we store, manage, or protect customer data. Our users’ privacy and data are important considerations in any transaction, and we remain committed to our users’ privacy and to being transparent with our customers about how their data is managed.”

However, it stated that buyers will have to ‘comply with applicable law with respect to the treatment of customer data’.

The Genetic Information Nondiscrimination Act in the US bars employers and health insurance companies from discriminating against people due to genetic information.

California Attorney General Rob Bonta last week advised customers to delete their genetic data due to 23andMe’s financial troubles.

"Once that data is out there, then, even if you requested your account to be deleted, they can't find your information because it no longer has your name attached. So for most people that might be fine as long as their names (are) not attached."

ABOUT THE AUTHOR
Yash Nitish Bajaj
Yash Bajaj is a Chief Content Producer with a strong foundation in US coverage, digital strategy, and audience-focused storytelling. As part of the US Desk at Hindustan Times, he covers a wide range of topics - from American politics to sports (NFL, NBA, derbies, MLB and more). Before joining Hindustan Times, Yash served as Deputy News Editor at Times Now, where he oversaw international coverage and led a team of six. In this role, he significantly expanded global traffic through strategic planning, SEO-driven content execution, and meticulous trend tracking across platforms. He is experienced in managing high-pressure breaking-news shifts, coordinating live coverage, and building newsroom systems that improve speed, accuracy, and reach. Prior to Times Now, Yash held a position at Opoyi, where he headed the Sports and US news team. He developed broad editorial strategies, guided reporters across multiple beats, and played a key role in recruiting and training new talent. His responsibilities also extended to social media management and experimenting with innovative content formats. A passionate NFL fan, Yash is a die-hard supporter of the Cincinnati Bengals and has followed Joe Burrow closely since his college days at LSU. Whether breaking down top players' latest performance, analyzing team performances, or tracking roster moves, he brings the same dedication and sharp storytelling to his sports coverage as he does to American politics and breaking news. When he’s not writing, Yash can often be found watching games or debating the latest NFL storylines with fellow fans. Yash holds a Bachelor of Mass Media (Journalism) from HR College, Mumbai University. His interests extend well beyond the newsroom: he is an enthusiastic explorer of AI tools, a movie buff with an ever-growing watchlist, and someone who enjoys unraveling conspiracy theories for fun.Read More

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