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<p>Genetic testing company 23andMe has filed for Chapter 11 bankruptcy protection in Missouri federal court, leaving one question on everyone’s minds: what happens to all the DNA it collected?</p>
<p>The company was once valued at more than $6 billion thanks to its at-home DNA testing kits allowing customers to gain insight into their ancestry and genetic profiles, CNBC <a href="https://www.cnbc.com/2025/03/24/23andme-files-for-bankruptcy-anne-wojcicki-steps-down-as-ceo.html">reported</a>. In 2021, the company went public and was valued at $3.5 billion. But soon after, its stock began to fall as it failed to continue to find viable recurring revenue. It currently has a market capitalization of just $25 million, CNBC reported.</p>
<p>The company made clear that the bankruptcy filing would not change how it stores or manages the data it has received from customers, but there are concerns that the bankruptcy filing could mean that customer DNA profiles are sold to the highest bidder. The Harvard Gazette published a <a href="https://news.harvard.edu/gazette/story/2025/03/what-happens-to-your-genetic-data-if-23andme-collapses/">report</a> recently discussing these exact concerns and noted that certain laws protecting health information would not be covered since 23andMe is not a hospital or physician. The company has already shared customer data with service providers and contractors.</p>
<p>They did note, however, that in “some instances, bankruptcy law had required a consumer privacy ombudsperson to investigate a sale and determine whether it’s keeping with the bankrupt company’s privacy statements, as well as the law,” meaning customer data could be protected.</p>
<p>In September 2024, 23andMe <a href="https://www.reuters.com/technology/cybersecurity/23andme-settles-data-breach-lawsuit-30-million-2024-09-13/" target="_blank" rel="noopener">settled a lawsuit</a> accusing it of failing to protect customer data after 6.9 million users’ personal information was exposed during a data breach.</p>
<p>The once billion-dollar company has struggled in recent years to generate recurring revenue and build lasting research and therapeutics businesses, CNBC <a href="https://www.cnbc.com/2025/03/24/23andme-files-for-bankruptcy-anne-wojcicki-steps-down-as-ceo.html" target="_blank" rel="noopener">reported</a>. Early Monday morning, company CEO and co-founder Anne Wojcicki announced she was resigning from her executive role but would remain on the company’s board.</p>
<p>“The 23andMe Special Committee released news today indicating their plan to take the company through the Chapter 11 process,” Wojcicki wrote on X. “While I am disappointed that we have come to this conclusion and my bid was rejected, I am supportive of the company and I intend to be a bidder. I have resigned as CEO of the company so I can be in the best position to pursue the company as an independent bidder.”</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">The 23andMe Special Committee released news today indicating their plan to take the company through the Chapter 11 process. While I am disappointed that we have come to this conclusion and my bid was rejected, I am supportive of the company and I intend to be a bidder. I have…</p>
<p>— Anne Wojcicki (@annewoj23) <a href="https://twitter.com/annewoj23/status/1904036140077969563?ref_src=twsrc%5Etfw">March 24, 2025</a></p>
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<p>Last March, the company formed a committee to come up with solutions. Wojcicki devised several proposals to take the company private but was rejected.</p>
<p>Chapter 11 bankruptcy doesn’t require the liquidation of assets, but 23andMe’s bankruptcy proposal <a href="https://storage.courtlistener.com/recap/gov.uscourts.moeb.462638/gov.uscourts.moeb.462638.1.0.pdf" target="_blank" rel="noopener">filed</a> with the court includes a plan to sell off company assets. The plan calls for the company to “actively solicit qualified” bids over a 45-day process, CNBC reported. In her note on X, however, Wojcicki said she was looking to secure the assets herself.</p>
<p>“If I am fortunate enough to secure the company’s assets through the restructuring process, I remain committed to our long-term vision of being a global leader in genetics and establishing genetics as a fundamental part of healthcare ecosystems worldwide,” she wrote.</p>
<p>The company has between $100 million and $500 million in estimated assets, but between the same amount in estimated liabilities, per the <a href="https://storage.courtlistener.com/recap/gov.uscourts.moeb.462638/gov.uscourts.moeb.462638.1.0.pdf">bankruptcy filing</a>.</p>
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23andMe Is Going Bankrupt. What Happens To All The DNA Samples?
