As DNA Service 23andMe files Chapter 11, Privacy Issues Arise

There are at least 250 companies worldwide that offer some sort of DNA-related health testing or genealogy data for various purposes. But the two most well-known are AncestryDNA (Ancestry.com) and 23andMe.

   23andMe files for Chapter 11

Ancestry DNA has a client list of about 20 million people, 23andMe has 15 million, according to various business sources. They utilize DNA to help people determine their family roots and histories, among other things.

23andMe utilizes saliva samples to determine a person's DNA for ancestry purposes, as well as determining potential health risks.

   23andMe announced they had filed on Sunday in US Bankruptcy Court in Maryland, and are seeking a buyer to maximize the process. They stressed the process will not affect in any way how sensitive data is treated, secured or stored.

But that has not stopped a lot of clients from worrying about their security. A cybersecurity expert who spoke with Fox News cited the 2023 data breach which exposed the personal information of 7 million 23andME customers.

John Bringardner, the head of Debtwire, said subsequent lawsuits from that breach set the financial stage for the eventual downfall of the company. He said while any potential buyer of the company would have to follow all laws, he said laws can only do so much.

Officials tried to take the company private, but that did not work. 23andMe has reached out to dozens of potential buyers ahead of an auction planned for May 14th, during which the company's assets would be sold off.

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As of now, consumers still have access to their accounts and their data.  Many consumers are fearful because unlike the typical data breach, this bankruptcy involves their DNA, which goes beyond their personal information.