The once-popular genetic testing company 23andMe is now facing bankruptcy—and that spells serious trouble for user data. Millions of people trusted 23andMe with their most sensitive genetic information, but with the company struggling financially, privacy advocates are warning of a looming data risk. In this blog, we unpack what’s happening, what it means for your DNA, and how you can protect your personal data in a post-23andMe world.
23andMe Bankruptcy Puts Data at Risk: Genetic Privacy Concerns Rise
It’s been a wild ride for 23andMe. From being one of the most talked-about startups in the world of DNA testing to now teetering on the edge of bankruptcy, the company’s downfall is raising red flags—especially when it comes to data privacy.
With millions of genetic profiles stored in its databases, the 23andMe data risk isn’t just theoretical. If the company goes under, what happens to all that DNA data? Let’s dive into the real concerns, what experts are saying, and how you can take control of your digital (and genetic) identity.
What’s Going on with 23andMe?
Founded in 2006, 23andMe allowed people to discover their ancestry and get health insights from a simple at-home DNA kit. But fast forward to 2025, and the company is in financial freefall.
Key Issues Behind the Bankruptcy:
Decreased demand: Interest in consumer DNA testing has dropped significantly in recent years.
Data breach fallout: In 2023, a major data breach exposed personal information of millions of users.
Regulatory pressure: Governments are cracking down on how genetic data is stored and used.
Loss of investor confidence: With trust and profitability eroding, funding has dried up.
Now, as bankruptcy looms, the real question is about data—and who gets access to it.
Why 23andMe Data Risk is a Big Deal
Unlike a regular email or phone number, your genetic information is permanent. You can change your password, but you can’t change your DNA.
Here’s why the risk is serious:
Massive database: 23andMe has genetic info on more than 14 million users.
Detailed personal data: This includes health predispositions, ancestry, family connections, and even raw DNA sequences.
Highly valuable: Pharmaceutical companies and data brokers see genetic data as gold.
Not easily deleted: Even if users request data deletion, backups may still exist.
With the company’s assets potentially up for sale in bankruptcy proceedings, privacy experts fear that genetic data could be sold off to the highest bidder.
What Does the Law Say?
In the U.S., genetic data regulation is still patchy. While laws like HIPAA protect medical data, they don’t fully cover consumer genetic testing companies.
23andMe’s Terms of Service: Most users agreed to let the company store and share data for research and business partnerships.
Bankruptcy loopholes: In bankruptcy court, data can be considered a company asset. This means it might be transferred, sold, or merged without new user consent.
That’s why the 23andMe data risk is so concerning. Once the company goes bankrupt, those protections could vanish.
Could Your DNA End Up in the Wrong Hands?
Unfortunately, yes.
If 23andMe’s data were to be sold or misused, here’s what could happen:
Insurance discrimination: Health or life insurers could deny coverage based on genetic risk markers.
Family privacy exposure: Your data can expose relatives—even those who never used 23andMe.
Data breaches: If bought by a less secure company, the risk of future hacks skyrockets.
Unethical research use: Your genetic code could be used in research you never agreed to.
What You Can Do Right Now
Worried about your data? You’re not alone. Here are a few steps you can take to reduce your exposure:
1. Request Data Deletion
Log in to your 23andMe account and submit a formal deletion request. Note: Some data may still remain in backups, but this is your best first step.
2. Revoke Research Consent
Check your settings to opt out of future data sharing for research or partnerships.
3. Monitor for Updates
Follow bankruptcy proceedings closely. Keep an eye on who acquires the company’s assets and how they plan to use them.
4. Stay Educated
Know your digital rights and follow advocacy groups like the Electronic Frontier Foundation (EFF) or Genetic Alliance for updates.
What This Means for the Future of Genetic Testing
The 23andMe data risk isn’t just about one company—it’s a wake-up call for the entire DNA testing industry.
Moving forward:
Stronger regulation is needed: Governments must step in with laws that treat genetic data as sacred, not commercial.
Transparency must be the norm: Users deserve to know exactly how their data is used—and what happens if a company fails.
Privacy-first companies will win: Brands that prioritize consent and data protection will gain long-term trust.
Final Thoughts
The 23andMe bankruptcy highlights a harsh truth: once your DNA is out there, it’s nearly impossible to get it back. With 23andMe data risk making headlines, consumers are realizing the true cost of giving up their genetic privacy.
If you’ve used a DNA testing service—or are thinking about it—it’s more important than ever to understand the fine print and take control of your data. Because when it comes to your DNA, the stakes couldn’t be higher.
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