Genetic testing and ancestry trackers were all the rage just a few years ago. But, after a well-documented data breach and a massive profit slump, 23 and Me has filed for bankruptcy.
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Per a report by Reuters, 23 and Me filed for bankruptcy on Sunday. Back in 2021, at the height of the DNA testing craze, the company was worth $6 Billion. The Standard says it's now worth less than $50 Million. Reuters says that the company frequently saw a spike in sales over holiday periods, but they were one-and-done purchases.
Hackers dealt a massive blow to 23 and Me's reputation in 2023. 7 Million users had their private data exposed over five months. The data breach made potential new users acutely aware of the risks and shone a spotlight on how the company and its competition handle data. 23 and Me reportedly agreed to a $30 Million settlement related to the breach last year.
According to the Daily Mail, California Attorney General Rob Bonta recommends all users of 23 and Me delete their data. He also reportedly said that users should have 'zero confidence' in the company. 23 and Me is still trading, allegedly looking for a potential takeover bid.
What Happens To User Data If 23 And Me Is Sold?
One burning question that many 23 and Me users will have is what will happen to their details. Unfortunately, a report by the Harvard Gazette offers little comfort. Users' genetic data is a 'valuable asset' for the company and would be of interest to any potential buyers of 23 and Me. The concern is that people who willingly gave their details to the company may object to where it could end up. The report soberingly explains that users have 'very little say' about what will happen to their data if a new company takes over. It's similar if the company goes bankrupt and sells its assets.
The Yorkshire Post stresses that users weigh up the potential risks and even provides instructions on how to delete your data from 23 and Me. The outlet also points out that the company has sold over 12 Million DNA testing kits.
