23andMe Files for Chapter 11 Bankruptcy, Privacy Experts Call for Users To Close Accounts

Genetic testing company 23andMe was making waves after its launch in 2006, reaching the heights of common popularity as the craze of sending in one’s saliva for genetic testing — and then the sharing of results with friends, family, and social media users at large — took hold.

Now, that trend seems to have dwindled in popularity as 23andMe filed for Chapter 11 bankruptcy in Missouri federal court on the evening of March 23, per CNBC.

Company CEO Anne Wojcicki has stepped down from her post as CEO, though she still remains a member of the board, with Joseph Selsavage — 23andMe chief finance and accounting officer — taking the helm as interim CEO.

“We have had many successes but I equally take accountability for the challenges we have today,” Wojcicki wrote on X early Monday morning. “There is no doubt that the challenges faced by 23andMe through an evolving business model have been real, but my belief in the company and its future is unwavering.”

Wojcicki also indicated that she would be pursuing the company as a private bidder in the days to come.

23andMe Users Urged To Close Accounts, Pay Attention to Privacy Concerns Related to Genetic Data

As TechCrunch outlined, 23andMe had already been leveraging the sale of users’ genetic data as part of its larger valuation. In addition to the privacy concerns brought forth by this notion, the company also suffered a massive data breach that saw user data related to 7 million individuals stolen by hackers throughout the course of 2023.

That breach resulted in a $30 million settlement in September of last year.

User data is also part of the sale package 23andMe is putting out there, as the outlet noted, with one caveat being that the company has strenuously resisted sharing information — at least on an involuntary basis from the affected users — with insurance companies or law enforcement agencies.

Despite this, California Attorney General Rob Bonta reiterated that residents of that state had legal options to pursue the protection (and deletion) of their data.

“California has robust privacy laws that allow consumers to take control and request that a company delete their genetic data,” said Attorney General Bonta in a statement. “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.”

Two tech sector voices also backed the above sentiment — Meredith Whittaker, president of messaging app Signal, and Eva Galperin, director of cybersecurity at the Electronic Frontier Foundation.

“It’s not just you. If anyone in your family gave their DNA to [23andMe], for all of your sakes, close your/their account now,” Whittaker posted to X.

“If you have a 23andMe account, today is a good day to login and request the deletion of your data,” Galperin wrote on the social media platform.