23andme agrees to support a Privacy Advocate for DNA data from customers

(Bloomberg) Bank Rot DNA test firm 23andme agreed to support an Ombudsman of the Court approved Datbudder approved by the court that would review the sale of the client’s genetic data as part of the bankruptcy of the company. The decision is a victory for federal and civil servants, who argued that clients would be better protected by a privacy lawyer appointed instead of the ‘data representative’ offered by 23andme to rent. US bankruptcy judge Brian Walsh authorized the lawyer, whose primary task is to submit a report on whether a sale of genetic data complies with federal legislation and is in the interests of clients. 23andme applied for bankruptcy in March after not earning sustainable profits by providing medical and ancestry -related genetic testing to more than 15 million clients. About 550,000 people pay for the two primary services of the business, which was not enough to keep the business above the water. Saliva samples in the company’s biobank – and the genetic data they produced – became the bankrupt company’s most marketable asset. But the prospect of the sensitive information drawn up at the auction has elicited anxiety among clients who are concerned about how and where their personal data can be used. Bankruptcy officials also expressed concern. The former Silicon Valley startup founded by Anne Wojcicki negotiated with potential buyers trying to get a binding, opening offer that would be used as a floor for an auction being supervised. In the months before the March 23, bankruptcy lioding, the company tried to attract a buyer. At the same time, it struggled to end a class action case associated with a 2023 data violation that gave hackers access to customer information. The company will try to resolve these claims as part of the bankruptcy. The Privacy Advocate will also investigate the company’s cyber security systems and how any potential buyer will protect customer data in the future. The case is 23andme Holding Co., number 25-40976, in the US Bankruptcy Court for the eastern Missouri district. More stories like these are available on Bloomberg.com © 2025 Bloomberg LP first published: 30 Apr 2025, 01:43 am Ist