By David LaGuerre
DNA for Sale: What 23andMe’s Bankruptcy Means for Your Genetic Privacy
In March 2025, genetic testing giant 23andMe filed for Chapter 11 bankruptcy, putting the DNA data of approximately 15 million people at risk of being sold to the highest bidder. This unprecedented situation raises serious questions about genetic privacy and what happens to our most personal information when companies fail.
What Exactly is DNA?
DNA (deoxyribonucleic acid) is the biological instruction manual that makes you uniquely you. This molecule contains the genetic code that determines everything from your eye color to your disease susceptibilities. Unlike a password or credit card number, your genetic information is permanent and uniquely personal—it cannot be changed if compromised.
The Rise and Fall of 23andMe
Founded in 2006 by Linda Avey, Paul Cusenza, and Anne Wojcicki, 23andMe pioneered direct-to-consumer genetic testing. For under $100, customers could mail a saliva sample and receive reports on ancestry and health predispositions. The company grew rapidly, building a database of over 14 million genetic profiles and reaching a peak valuation of $6 billion when it went public in 2021.
However, 23andMe’s business model proved unsustainable. The company struggled to convert one-time kit buyers into repeat customers. By early 2024, it had laid off 40% of its workforce and discontinued its therapeutics division. The final blow came from a massive 2023 data breach that exposed 6.9 million customers’ information, leading to lawsuits and irreparable damage to consumer trust.
What Happens to Your DNA in Bankruptcy?
Unlike medical information protected under HIPAA, genetic data collected by private companies exists in a regulatory gray area. While bankruptcy law provides some protections for personally identifiable information, the sale of such sensitive data remains largely untested legally.
Privacy experts warn that potential buyers could include:
- Pharmaceutical companies seeking genetic data for drug development
- Insurance companies looking to adjust premiums based on genetic predispositions
- Law enforcement agencies wanting access for criminal investigations
- AI companies developing genetic prediction algorithms
Expert Opinions
Privacy advocates are sounding alarms about the potential consequences. “Once your genetic data is out there, you can’t take it back,” warns Darren Williams, a data privacy expert. “De-identified data can often be re-identified, especially given the extensive metadata collected through questionnaires and family-matching features.”
Scientists have a more nuanced view. The database has contributed to over 250 research studies, and some researchers hope a responsible buyer will maintain access for scientific purposes. “There’s valuable knowledge about human health locked in this data,” notes geneticist Rachel Freathy.
Protecting Your Genetic Privacy
If you’re a 23andMe customer, experts recommend:
- Download your data immediately
- Request deletion of your information from 23andMe’s databases
- Document all deletion requests for potential legal recourse
- Monitor communications from 23andMe about data handling
- Consider genetic privacy when using similar services in the future
The Bigger Picture
The 23andMe bankruptcy highlights the urgent need for comprehensive federal protections for genetic information. As our most personal biological data becomes increasingly commercialized, consumers must demand stronger safeguards and greater transparency.
Your DNA isn’t just data—it’s the blueprint of who you are. Perhaps the most valuable lesson from 23andMe’s downfall is that we should think carefully before handing over something so precious to a private company.
