23andMe's Chapter 11 Bankruptcy: How Does This Affect DNA Data of Company's 15 Million Customers?

23andMe, as expected for months now, has formally announced the initiation of Chapter 11 bankruptcy proceedings. The move comes after extensive speculation on the company’s future, all while many who had taken part in its genetic testing services continue to raise questions about what, exactly, will happen to their data.

In a statement shared over the weekend, Mark Jensen, chair and member of the company’s Special Committee of the Board of Directors, said that Chapter 11 represented “the best path forward,” with the aim being that this “court-supervised process” will allow the company’s mission to continue.

No matter what comes next, the move marks a significant one for the ubiquitous company, whose retail DNA test was dubbed the Invention of the Year by Time magazine back in 2008. Optimism remained high for years after that distinction, though—as detailed in this 2024 NPR piece—confidence started to wane in the 2020s.

With that in mind, many customers have been expressing privacy concerns ahead of a potential change of hands. Below, we dig into some answers.

What happened to 23andMe?

On March 23,23andMe announced that it had “initiated voluntary Chapter 11 proceedings” in U.S. Bankruptcy Court in Missouri. While this move is designed to, per a press release, “facilitate a sale process to maximize the value,” the company also said that it hoped to continue its operations ahead of a possible sale.

More specifically, this means 23andMe is looking to sell its assets, with any potential buyer being “required to comply” with laws regarding customer data.

What happened to 23andMe CEO Anne Wojcicki?

23andMe co-founder Anne Wojcicki has resigned from her prior role as CEO, although Sunday’s bankruptcy announcement noted that she would continue to serve as a board member. In a lengthy statement shared to X on Monday, Wojcicki acknowledged the rejection of her bid but signaled that she would try again as an “independent bidder” following her resignation.

“There is no doubt that the challenges faced by 23andMe through an evolving business model have been real, but my belief in the company and its future is unwavering,” Wojcicki said, adding that the current moment sees consumers wanting “more control over their health” and related data.

What has 23andMe said about customers' DNA data?

According to 23andMe’s communications over the weekend regarding the initiation of its bankruptcy process, there will be “no changes” in how customers’ data is stored or managed. In an open letter, the company included a “what this means for you” breakdown aimed at answering customers’ privacy questions. Per that statement, data “remains protected,” with customer access also remaining “unchanged” as the Chapter 11 process takes shape.

While 23andMe’s messaging has centered on what it says is the pursuit of potential buyers who are likeminded in terms of data protection and customer privacy, not everyone has been convinced in the run-up to this weekend’s Chapter 11 confirmation. Earlier this month, for example, California Attorney General Rob Bonta shared a “consumer alert” for 23andMe customers citing the state’s “robust privacy laws.”

For customers looking to have their data deleted, the company says that's still an option too.