23andMe, the California-based genetic testing company, has filed for voluntary Chapter 11 bankruptcy as it seeks to sell most of its assets. The company, which went public in 2021, has faced growing financial distress following a major data breach in 2023 affecting 6.9 million users. It currently reports $214.7 million in debt against $277.4 million in assets. Amid this turmoil, CEO and Co-Founder Anne Wojcicki announced her resignation, explaining that she intends to independently bid for the company to help it regain stability. Although operations are continuing, consumer concerns about data security have intensified, especially as several state attorneys general have urged users to delete their genetic information.
Following the bankruptcy announcement, 23andMe assured customers that its privacy policies remain in effect, though it acknowledged that user information might be transferred during the sale. Many users attempting to delete their data experienced technical issues, causing frustration and skepticism about whether their information was truly erased. While the company claimed these problems have been fixed, the bankruptcy proceedings and leadership changes have severely shaken public trust. With future ownership uncertain, users are being encouraged to act promptly to protect their personal data, as genetic information cannot be replaced or secured like financial details.
