Genetic testing service 23andMe has filed for Chapter 11 bankruptcy protection to keep the company running while reorganizing its debts.
The bankruptcy of 23andMe Holding Co. has thrust the issue of data privacy firmly into the spotlight as the DNA testing company looks to sell its most valuable asset: a vast trove of customers’ genetic data.
The bankruptcy filing of 23andMe has sparked the potential for a sale that could be used to solve cold cases with the use of genetic testing.
California has some of the strongest privacy laws in the country — and the only dedicated privacy agency — but 23andMe has revealed the limits of legislation when the worst happens, with even the state attorney general admitting he struggled to delete his own data from the company.
The bankruptcy underscores the great risks of investing in many of the companies that have gone public via mergers with special-purpose acquisition corporations.
After the company filed for bankruptcy state officials recommend customers delete their data making it a difficult decision for families.
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Me cofounder Linda Avey is mourning what the biotech company could have become. The company filed for Chapter 11 bankruptcy protection on Sunday.