23andMe Enters Bankruptcy as CEO Resigns – One America News Network
OAN Staff Abril Elfi
10:39 AM – Monday, March 24, 2025
The genetic testing company 23andMe has initiated Chapter 11 bankruptcy proceedings, leading to the resignation of its CEO, Anne Wojcicki.
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On Sunday, the firm filed for Chapter 11 bankruptcy protection in a federal court located in Missouri.
Wojcicki stepped down from her position as CEO immediately, although she indicated her intention to remain on the board.
Joseph Selsavage, who serves as 23andMe’s Chief Financial and Accounting Officer, will assume the role of interim CEO, as noted in a filing with the U.S. Securities and Exchange Commission.
“We have experienced numerous successes, but I also take responsibility for the obstacles we face today,” Wojcicki stated in a post on X. “There’s no doubt that the challenges encountered by 23andMe due to a changing business model have been significant, but my belief in the company and its future remains strong.”
However, numerous customers have expressed concerns regarding the handling of their personal information in the event of a sale or data breach. Unfortunately, cyber attackers did manage to access 6.9 million records following a breach in October 2023, as reported by the BBC.
In response to the breach, 23andMe agreed to a $30 million settlement and committed to providing three years of security monitoring.
California Attorney General Rob Bonta issued a “consumer alert” concerning the vast amount of sensitive consumer data amassed by 23andMe. This alert informs customers that they have the right to request the deletion of their genetic data, destroy their test specimens, and withdraw permission for their genetic data to be used in research.
“There are no changes being made to the methods the Company employs to store, manage, or protect customer data,” 23andMe stated in a media release.
The company reported that it has secured approximately $35 million in debtor-in-possession (DIP) financing. 23andMe anticipates continuing operations throughout the asset sale process. According to the filing, the firm has estimated assets between $100 million and $500 million, alongside a similar range for estimated liabilities.
If approved, 23andMe’s plan to sell its assets during the bankruptcy proceedings will involve “actively soliciting qualified bids” over the next 45 days.
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