What is 23andMe?

23andMe, a US personal genomics and biotechnology company, is best known for providing a direct-to-consumer genetic testing service.

Customers provide a saliva sample which is analysed laboratory. To generate reports, the company uses single nucleotide polymorphism genotyping. The reports came for the customer’s ancestry and genetic predispositions to health-related topics.

Why did 23andMe head to bankruptcy court to sell its assets?

However, the genetic information company filed for bankruptcy on Sunday, hit by faltering demand for its heritage testing kits as it fought to cover the reputational damage from an extensive data breach.

The company has announced it is headed to bankruptcy court to sell its assets as its financial distress prompted California Attorney General Rob Bonta to issue an unusual privacy “consumer alert”.

He said in a statement that he directed 23andMe to delete their data and destroy any samples of genetic material held by the company. He also reminded Californians to consider invoking their rights.

Founded in 2006, 23andMe, which was a pioneer in the quest to unlock knowledge from the human genome, became the first company soon to start offering autosomal DNA testing for ancestry. All other major companies now use the test.

While researching new kinds of treatments, the company offers customers information about their family tree and hereditary characteristics. However, simultaneous business and security challenges slammed 23andMe in recent years.

The company went public in 2021 but burned through its cash. 23andMe watched its value drop from about $6 billion to around $50 million now.

The company in 2023 suffered a data breach that affected seven million customers

Hackers to gain access to their family trees, birth years, and geographic locations used customers’ old passwords