Adapted by:
Javier Márquez
WriterI've been in media for over a decade, but I've been marveling at the possibilities that technology brings us much longer. I believe we live in a world where the digital revolution is changing everything and that Xataka is the best place to write about it.
Alba Mora
WriterAn established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.
23andMe is a company that promises to “provide genetic reports on your ancestry, family history and help you connect with your DNA relatives.” Users send in a saliva sample and receive information about their ancestral origins and potential long-lost relatives. The process is simple. No needles or blood are required, making it a convenient home genetic test that promises personal insights into your heritage.
Once registered on the platform, users receive a small box containing a collection tube. They need to take a saliva sample and return it by mail. The DNA is then digitized and analyzed using algorithms. Users get the results directly to their inbox in about three to four weeks.
Bankruptcy. The idea of uncovering your past for under $120 seemed like a winning proposition, yet things didn’t go as planned. On Sunday, 23andMe filed for Chapter 11 bankruptcy, leading to the resignation of CEO Anne Wojcicki.
This outcome wasn’t unexpected. 23andMe had been grappling with questions about its business model and disputes with investors. Users had also expressed concerns surrounding the ownership of the company’s extensive genetic database. Notably, 23andMe has never reported a net profit. Additionally, its stock market value has significantly declined in recent years, putting it in a precarious position.
Wojcicki previously attempted to take the company public multiple times, but her proposals have been consistently rejected. “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,” the former CEO shared in an X post on Monday.
Privacy nightmare. According to 23andMe’s website, more than 12 million people have shared their DNA with the company. Now, their data could potentially end up in the hands of another company. This is a real possibility, given that the restructuring process includes plans to sell assets to “maximize the value of the business.”
This situation has raised alarms for California Attorney General Rob Bonta, who issued a consumer alert regarding privacy issues. He reminded citizens that they have the right to request the deletion of their data and the destruction of any genetic samples that the company still possesses.
For its part, 23andMe has assured users that its data protection won’t change during the bankruptcy process. However, its security record is far from perfect. For instance, in 2023, one of its databases containing millions of profiles was leaked on the dark web.
Images | Warren Umoh | 23andMe
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