Humans are naturally curious, so it is no surprise that many people are interested in discovering more about their family history.
With the development of DNA testing and the emergence of companies offering these services, it’s now easier than ever to discover one’s ancestral roots and geographical origins, find people with shared DNA, and possibly connect with long-lost relatives.
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23andMe is a company that provides DNA testing services. These services allow customers to obtain insights about their ancestry, health predispositions, and traits by simply mailing their saliva or blood samples to be analyzed.
Additionally, customers can get in-depth ancestry reports with relatives’ relationships and names, the percentage of DNA shared with matches, and ancestral origins.
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However, “Curiosity killed the cat,” and as amusing as finding out about your family history may sound, willingly sending your DNA off to be tested, and for that information to be stored, by a company other than your typical medical lab comes with its risks.
23andMe kit displayed on a table.
23andMe suffers a huge data breach that puts people’s information at risk
In October 2023, it was revealed that 23andMe (ME) had suffered a massive data breach, putting nearly 7 million people’s data at risk of public exposure after the hacker offered to sell the information on the dark web.
In an email to users, 23andMe addressed the hacking by stating that the reason for this event was not the company’s failure to provide proper security measures but rather its users’ neglect to update their passwords.
This blaming battle triggered multiple class action lawsuits by 23andMe users against the company over the lack of implemented security measures. This ultimately led to a $30 million settlement and a free three-year enrollment in the Privacy & Medical Shield + Generic Monitoring program for all the affected customers.
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In addition to the detrimental hacking scandal, 23andMe has been facing ongoing financial troubles.
According to the company’s second-quarter earnings report for 2025, total revenue declined by 12% compared to the same period last year.
23andMe files for Chapter 11 bankruptcy
On Mar. 23, the DNA testing company 23andMe filed for Chapter 11 bankruptcy in the Missouri federal court amid a series of struggles, including continuous revenue declines, the alarming data breach, and low demand for DNA testing kits.
This tumultuous time has led 23andMe’s Co-founder and CEO, Anne Wojcicki, to resign from her executive role, effective immediately, although she will remain on the company’s board.
In the meantime, 23andMe’s Chief Financial and Accounting Officer, Joseph Selsavage, will serve as the company’s interim CEO.
According to the filing, 23andMe secured a $35 million financial commitment to continue operations during the sale process. The company also has between $100 million and $500 million in estimated assets and liabilities.
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Since last year, Wojcicki has made various offers to acquire the company and filed multiple proposals to go private, but they were all rejected.
It remains unclear who will acquire 23andMe, and no other buyout offers have been disclosed, which has raised concerns about what could happen to the private data of its 15 million customers.
On Mar. 21, California’s Attorney General, Rob Bonta, urgently issued a consumer alert to all 23andMe customers to request that the company delete all data from their accounts and destroy any stored test samples under the Genetic Information Privacy Act (GIPA) and California Consumer Protection Act (CCPA), given the company’s financial distress.
Since the bankruptcy filing announcement, the company’s stock has cratered and is currently down over 47% as of Monday’s trading hours, with a market capitalization of nearly $25 million.
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