Your DNA, Their Debt: What 23andMe’s Bankruptcy Means for You
by Tracy Work
Remember when those personal genetic tests were all the rage? You know, the ones that took a bit of your saliva (and a mere $99), and in return gave you incredible insight into your genetic ancestry and origins?
23andme has been in the news lately and it turns out all the data you gave them may go to a new owner soon. So, what did you actually give 23andMe along with your $100? Come June 17, the date of the hearing to finalize the sale to the new owner, it may turn out to be a lot more than you anticipated.
If you signed up, you likely shared:
- Your raw genetic data – including over 600,000 individual genetic markers (SNPs).
- Health information – such as carrier status for diseases like BRCA, risk scores for diabetes, heart conditions, and even traits like earwax type.
- Survey answers – lifestyle, family background, and medical history, all of which are goldmines for marketers and researchers.
- Basic account info – name, email, IP addresses, and payment details.
Some customers also opted into long-term research partnerships, giving 23andMe wide permission to share “de-identified” data with pharmaceutical companies for research and drug development. And, unless you specifically told them to discard your sample, that physical tube of DNA is, in all likelihood, still stored in a biobank freezer in a building or warehouse somewhere in the middle of North Carolina.
Why Bankruptcy Changes the Game
When a company files for Chapter 11 bankruptcy protection, as 23andMe did on March 23, 2025, all its assets—data included—go into the “bankruptcy estate.” Ultimately, that pot gets sold and profits are used to pay off creditors. A judge may approve the sale of customer data as part of that process, even if the company’s privacy policy says otherwise.
This isn’t just theory. In the early 2000s, the FTC blocked a similar sale when a bankrupt toy company, toysmart.com (a Disney-backed online toy retailer), tried to sell customer info it promised never to share. In the end, the FTC allowed the sale—but (fortunately) with conditions that largely mitigated the risk to customers.
Expect a similar tug-of-war here. The FTC and state attorneys general will likely step in. But if a data-hungry buyer wins the auction, your DNA could be part of the deal.
What Could Happen to Your Data?
Here are five real-world risks:
1. Data sale to a new owner – A biotech company, or even a data broker, might acquire your genetic info. “De-identified” data can be re-identified, especially when paired with other data sets.
2. Insurance discrimination – The Genetic Information Nondiscrimination Act (GINA) prevents health insurers and employers from using genetic data—but does not include life, disability, or long-term care insurers.
3. Security breaches – Bankrupt companies often slash budgets. 23andMe already suffered a data security breach in October of 2023. Less money = more risk.
4. Research repurposing – If you gave research consent, that permission may carry over to a new owner, who could reinterpret how it’s used.
5. Reuse of your physical DNA – That frozen sample? A future buyer could use it to run more intrusive tests. This even includes tests that weren’t technically feasible when you originally provided the sample
What You Can Do Right Now
If you’re a 23andMe customer, you may want to consider a few things. You can:
- Download your data – Go to your account settings and save your raw data file.
- Delete your account – Ask for your account to be deleted and your sample destroyed.
- Withdraw from research participation – You can revoke consent through your account.
- Enable two-factor authentication – Make it harder for hackers to access your data.
- If needed, file a complaint – Contact the FTC and your state attorney general.
Other Things to be on the Lookout For
- Accuracy of health reports – If 23andMe’s lab standards slip, the quality of its genetic insights could too.
- New owners, new terms – Future data use or licensing could expand beyond what you agreed to.
- Pending lawsuits – If you were directly affected by the 2023 data breach, settlement payouts could be cut.
- International data transfers – If your data includes EU elements, GDPR may apply.
- Sample storage – State tissue laws might require renewed consent.
Final Thoughts
Your DNA doesn’t change. But, on June 17, 2025, the current hearing date to finalize the sale of 23andme, the company holding your DNA will.
If 23andMe goes through a sale, you could end up with a new data steward you never agreed to, or even imagined. That’s why it’s worth taking a few minutes to review your account, pull your data, and hit delete if you’re uncomfortable with the potential risks.
No one can guarantee your data won’t get caught in the crossfire. But a few proactive steps can minimize the damage if it does.
Disclaimer
This article does not constitute legal advice or create an attorney-client relationship. If you need legal advice specific to your situation, please consult a qualified attorney.