Genetics testing leader 23andMe has declared bankruptcy, prompting its 15 million American users to consider deleting their profiles due to concerns that their DNA data may be sold.
California Attorney General Rob Bonta has advised 23andMe users to “remove their data and dispose of any genetic samples retained by the company.”
His remarks came just hours before 23andMe submitted its bankruptcy filing late Sunday, which caused its stock price to plummet to a mere 96 cents per share. CEO Anne Wojcicki, who co-founded the company, has stepped down from her position.
Despite the bankruptcy, 23andMe will continue its operations as Wojcicki makes a concerted effort to initiate a takeover bid to rescue the struggling tech company.
However, she faces significant challenges, especially after California’s top attorney expressed that users should have no trust in 23andMe.
Bonta emphasized the uncertainty surrounding the fate of sensitive personal data, noting that users had previously paid $200 for DNA analysis to uncover their ancestral backgrounds.
Founded by entrepreneur Wojcicki, 23andMe is located in Silicon Valley, which subjects it to California’s Genetic Privacy Act.
This legislation grants consumers the right to access and delete their data at any time. Users can eliminate their information by logging into their accounts, navigating to ‘settings,’ selecting ‘view,’ and then choosing ‘delete data.’
This process generates an email that customers must click to complete the deletion. Once a tech favorite, 23andMe’s stock reached $320 in 2021, captivating users eager to learn about their ancestral origins.
Oprah Winfrey included the 23andMe test kits in her annual list of favorite items in 2017, highlighting their popularity among fans.
Individuals who provided a DNA sample received a detailed analysis of their ancestry, revealing the ethnic backgrounds of their ancestors.
Additionally, law enforcement agencies utilized 23andMe to resolve notable cold cases.
By entering a suspect’s information into the DNA database, investigators could identify potential relatives who had innocently shared their DNA data.
This process allowed them to significantly narrow down the list of possible suspects, whose backgrounds were subsequently examined for any connections to the crime scene.
The company’s downfall was attributed to rapid expansion and a data breach in 2023, which deterred users from engaging with the platform.
Wojcicki, the CEO and co-founder of the site, was previously married to Sergey Brin, a co-founder of Google, from 2007 to 2015.
She leveraged her network to seek investment for the company.
Wojcicki’s latest acquisition proposal valued 23andMe at a mere $11 million, equating to 41 cents per share.
This represents a dramatic decrease from the company’s peak valuation of $46 billion in early 2021.