Following the resignation of co-founder Anne Wojcicki as CEO, the company's market value plummeted from nearly $6 billion to just 88 cents per share.

Despite these challenges, 23andMe will continue operations, having secured $35 million in debtor-in-possession financing from JMB Capital Partners.

There are significant worries that users' genetic data could be exploited for targeted advertising or phishing scams, with malicious actors potentially posing as relatives.

23andMe, a prominent genetic testing service, filed for Chapter 11 bankruptcy on March 24, 2025, amid concerns about customer data privacy and plans to pursue a sale.

Cybersecurity experts emphasize that unlike passwords, DNA cannot be changed if compromised, raising unique risks for individuals.

Emily Tucker from Georgetown Law stresses the need for consumers to recognize the risks associated with sharing DNA with corporations, which can alter data policies at any time.

The precedent of other genetic databases sharing information with law enforcement raises concerns about the potential future use of 23andMe's data in similar ways.

This situation underscores the urgent need for increased consumer awareness regarding the privacy and security of genetic information.

Andrew Crawford from the Center for Democracy and Technology highlighted the lack of federal regulations governing genetic data held by tech companies, contrasting it with protections for medical professionals.

Despite its past successes, including FDA approval and recognition as a disruptor, 23andMe has faced ongoing criticism regarding privacy issues and the reliability of its testing results.

Ancestry testing results can vary significantly between companies, leading to further consumer confusion and highlighting the need for clarity in genetic testing.

Medical ethics expert Jason Wasserman reassured users that their identifying information should remain protected under user agreements, even if ownership of the data changes.