23andMe's Bankruptcy Sparks Privacy Concerns Over Genetic Database Of 15 Million Customers

Core Points - 23andMe Holding Co has voluntarily filed for Chapter 11 bankruptcy to facilitate a sale process aimed at maximizing business value following a rejected acquisition offer from CEO Anne Wojcicki and her affiliates [1] - The company has proposed an auction for its assets on May 14, raising concerns about the potential sale of customer genetic data due to bankruptcy [2] - 23andMe maintains that the Chapter 11 filing does not alter how it stores, manages, or protects customer data, and customers will retain access to their accounts and genetic reports during the process [3] Data Privacy Concerns - Customers' genetic data may be sold to the highest bidder, prompting concerns regarding privacy and legal protections [2] - Bidders in the auction must comply with the company's privacy practices, which do not restrict the transfer of personally identifiable information during bankruptcy or asset sales [4] - New York Attorney General issued a consumer alert, providing instructions for customers on how to delete their personal data and destroy genetic samples held by the company [3] Recent Incidents - In 2023, a data breach occurred when a threat actor accessed several accounts through credential stuffing, with the company learning of the breach in October 2023 [5] - The company settled lawsuits related to the breach for $30 million, but objections have been raised regarding the settlement's design to undermine claimants' rights [6] - Following the bankruptcy news, 23andMe's stock price fell by 11.7$0.64 [6]