Source: The Peninsula Qatar
The U.S. House Committee on Energy and Commerce has initiated an investigation into 23andMe's recent Chapter 11 bankruptcy filing, expressing deep concerns over the potential compromise of sensitive genetic data belonging to over 15 million customers. The inquiry, led by Reps. Brett Guthrie (R-Ky.), Gus Bilirakis (R-Fla.), and Gary Palmer (R-Ala.), seeks clarity on how the company plans to safeguard user data during its restructuring process.
Once valued at $6 billion, 23andMe gained prominence through its at-home DNA testing kits, offering insights into ancestry and health. However, the company has faced declining demand, mounting debts totaling $2.3 billion, and a significant data breach in 2023 that exposed personal information of nearly 7 million users.
The 2023 cyberattack exploited reused passwords, granting hackers access to detailed profiles, including names, birth years, locations, and genetic information. Notably, data pertaining to Ashkenazi Jewish and Chinese users was specifically targeted and sold on the dark web. The breach led to over two dozen lawsuits and a $30 million settlement in 2024.
In their letter to interim CEO Joe Selsavage, the lawmakers emphasized the absence of comprehensive federal data privacy laws, highlighting the risks associated with the potential sale of genetic data during bankruptcy proceedings. They underscored that while health information is protected under HIPAA, direct-to-consumer genetic data often falls outside its scope.
23andMe asserts that any potential buyer must adhere to its existing privacy policies and applicable laws concerning customer data. The company has stated that the bankruptcy process will not alter its data management practices. However, privacy advocates remain skeptical, citing past incidents and the lack of stringent federal regulations.
In light of the bankruptcy and potential data risks, attorneys general from states like California and New York have advised residents to delete their genetic data from 23andMe's databases. Users can request data deletion through their accounts and ask for the destruction of stored DNA samples.
As 23andMe navigates its bankruptcy proceedings, the fate of its vast genetic database remains uncertain. The company's proposed asset auction is scheduled for May 14, with potential buyers including founder Anne Wojcicki and other genomics firms. The outcome will likely set precedents for data privacy in the burgeoning field of personal genomics.
For users concerned about their data privacy: