Lawmakers probe 23andMe bankruptcy over concerns about genetic data security

Leaders of the House Committee on Energy and Commerce have launched an investigation into how genetic testing company 23andMe plans to safeguard sensitive customer data in the wake of its Chapter 11 bankruptcy filing, expressing concern over the potential sale or misuse of highly personal genetic information.

In a letter sent Thursday to interim CEO Joe Selsavage, Republican Representatives Brett Guthrie (KY), Gus Bilirakis (FL), and Gary Palmer (AL) raised pointed questions about the company’s data handling policies, particularly as 23andMe considers restructuring or selling assets. The lawmakers emphasized the lack of federal protections under the Health Insurance Portability and Accountability Act (HIPAA) for direct-to-consumer genetic testing firms, calling attention to the potential vulnerabilities in an evolving legal and technological landscape.

“Given the lack of HIPAA protections, the patchwork of state laws covering genetic privacy, and the uncertainty surrounding what happens to customer information should a sale of a company or customer data and information transpire, we are concerned that this trove of sensitive information is at risk of being compromised,” the representatives wrote.

The inquiry also references customer complaints about difficulties in deleting personal data from the 23andMe platform—an issue that has raised red flags for privacy advocates and regulators alike.

Founded in 2006, 23andMe gained widespread popularity for its at-home DNA test kits, offering insights into users’ ancestry and genetic health markers. But after going public in 2021, the company faced a series of financial and reputational setbacks. Its market value has collapsed by over 99% from a peak valuation of $6 billion as it failed to generate consistent profits.

A pivotal moment in the company’s downturn came in 2023, when it suffered a massive cyberattack that exposed the genetic and personal data of nearly 7 million users. Hackers reportedly gained access to information ranging from ancestry profiles to health predispositions. In September 2024, 23andMe agreed to a $30 million settlement to resolve a class-action lawsuit stemming from the breach.

In March 2025, the company filed for bankruptcy protection under Chapter 11, signaling a potential sale or restructuring. As part of the process, co-founder and then-CEO Anne Wojcicki announced her resignation and expressed plans to become a private bidder for the company.