Ever wondered what happens to your DNA when the company that holds it goes bankrupt? 6.9 million 23andMe customers are about to find out in a real-life science experiment nobody signed up for.
At a Glance
- Genetic testing giant 23andMe has filed for Chapter 11 bankruptcy protection while attempting to sell the company
- California Attorney General has issued a consumer alert urging users to delete their genetic data amid concerns about the future security of this sensitive information
- Co-founder Anne Wojcicki has resigned as CEO but plans to bid for the company herself
- The company recently settled a $30 million lawsuit over a data breach affecting 6.9 million customers
- 23andMe insists customer data remains secure despite financial turmoil
Your DNA: For Sale in Bankruptcy Court
The company that convinced millions of Americans to mail in their DNA for analysis is now filing for bankruptcy protection. 23andMe, once a pioneering darling of the genetic testing industry, announced Sunday it had initiated Chapter 11 proceedings in the US Bankruptcy Court for the Eastern District of Missouri. The company that holds the genetic blueprints of millions of trusting customers is now desperately seeking a buyer while assuring everyone their most intimate biological data is perfectly secure – because bankruptcy proceedings are known for their careful handling of sensitive assets, right?
This financial collapse follows a cascading series of setbacks for the company, including a 40% reduction in workforce last November and a recent $30 million settlement for a data breach affecting nearly 7 million customers. Yet somehow, we’re supposed to believe that our genetic information – literally the blueprint of our existence – is in safe hands. California Attorney General Rob Bonta isn’t buying it and has issued a stark warning to consumers about the “trove of sensitive consumer data 23andMe has amassed.”
California AG: Delete Your DNA While You Still Can
In a move that should alarm every 23andMe customer, California’s Attorney General has issued an urgent consumer alert advising users to delete their genetic data from the company’s databases. When a state’s top law enforcement official essentially tells you to run from a company holding your most personal information, it might be time to listen. Bonta isn’t mincing words about the risks of having your genetic blueprint caught up in bankruptcy proceedings where creditors are circling like vultures.
“California has robust privacy laws that allow consumers to take control and request that a company delete their genetic data,” said Attorney General Bonta. “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.”
The Attorney General’s office has even helpfully provided step-by-step instructions for users to delete their accounts and genetic data – a service rarely necessary when dealing with financially stable companies. While 23andMe insists there are “no changes to how customer data is stored, managed, or protected,” the fact that they’re in bankruptcy court tells you everything you need to know about their ability to make good on promises. Remember when tech companies used to say “trust us” and it wasn’t immediately followed by laughter?
Corporate Musical Chairs: CEO Resigns to Bid for Her Own Company
In a twist that perfectly captures the bizarre state of corporate America today, co-founder and CEO Anne Wojcicki has resigned from her position – not because the company crashed under her leadership – but so she can “be in the best position to pursue the company as an independent bidder.” That’s right, the captain who steered the ship into the iceberg is now offering to buy the wreckage at a discount. Wojcicki, who famously raised more than $600 million in venture capital funding, will now try to scoop up the company’s assets – including possibly your genetic data – in bankruptcy court.
Meanwhile, CFO Joe Selsavage has been promoted to interim CEO, tasked with keeping the genetic testing lights on while the bankruptcy process unfolds. The company has secured $35 million in debtor-in-possession financing to continue operations – basically life support for a business with somewhere between $100-500 million in liabilities. They’re also looking to execute a $50 million transaction through the bankruptcy process, which means someone is about to get a fire-sale deal on a company that once promised to revolutionize personal healthcare.
The Cautionary Tale of Digital Genetic Promises
The 23andMe bankruptcy saga reads like a cautionary tale about the dangers of entrusting your most personal information to private companies making big promises. Millions of Americans paid this company to analyze their DNA, only to now find those intimate genetic details caught in a bankruptcy proceeding where assets get sold to the highest bidder. For years, privacy advocates warned about the risks of sending your genetic material to for-profit companies, concerns that were brushed aside with promises of security and revolutionary health insights.
Perhaps the most infuriating aspect is that while 23andMe’s business model falters, the value of the genetic database they’ve accumulated remains immensely valuable to various interests – from pharmaceutical companies to data brokers. If you’re one of the millions who spit in a tube hoping to learn about your ancestry or health predispositions, now might be the time to follow the California Attorney General’s advice and request deletion of your data before it becomes just another asset to be auctioned off to satisfy creditors. Welcome to the brave new world where your DNA becomes a bankruptcy asset.
