23andMe Files for Bankruptcy: What Genealogists Need to Know

Note: This is a developing story. We will continue to update this article as new information becomes available.

On Sunday, March 23, 23andMe–one of the world’s largest consumer genetic testing companies–announced that it is filing for Chapter 11 bankruptcy. The company also revealed that its CEO and co-founder, Anne Wojcicki, has stepped down and it appears that she is positioning herself as a potential buyer.  

According to its official statement, 23andMe has initiated voluntary Chapter 11 proceedings and intends to continue operating as usual throughout the process. On March 26, 23andMe received approval from the bankruptcy court for its initial Chapter 11 motions. 23andMe will seek to sell all of its assets in an effort to restructure. 

In May, 23andMe announced it had reached an acquisition agreement with Regeneron Pharmaceuticals, a biotech company. If approved by the bankruptcy court, 23andMe will have its new owner sometime this summer or fall.

While many in the genealogy community have used 23andMe for DNA testing, its primary business has always been health data and genetic research–not family history.  

So, what exactly does Chapter 11 mean, and what should genealogists who’ve tested with 23andMe expect next?  

At Family Tree Magazine, we’ve actually been through this before. We were once published by F+W Media, which filed for Chapter 11 in 2019. As part of that process, we were sold to our current publisher, Yankee Publishing.  

From that experience, we’ve learned a few things—and we’re here to help make sense of what comes next. 

What is Going on at 23andMe? 

Is 23andMe going out of business? 

Not at this time. For one thing, filing Chapter 11 doesn’t mean a company is closing its doors. Instead, it’s a legal process that allows a business to restructure its debts ahead of selling the company and while continuing to operate. 23andMe is looking for potential buyers—and in fact will likely try to make itself look as financially stable and appealing as possible. 

Accordingly, here are a few things to keep in mind: 

23andMe will continue—at least for now. Even after a sale, parts or all of the company could keep operating. It’s also possible that different parts of the business could be sold off separately. For example, Family Tree Magazine as a brand was sold to Yankee Publishing amid Chapter 11 proceedings but F+W Media itself ceased to exist after the process was all said and done. 

The bankruptcy court now plays a major role. Decisions big and small, from spending to sales strategy, often go through the court. That can mean delays and uncertainty. 23andMe has a website for the bankruptcy case that will be updated as more information becomes available.

Employees are likely told to carry on as usual. During our Chapter 11 period, staff was instructed to maintain “business as usual” on the surface and to remain at their posts—but the tumultuous situation led to some staff departures behind the scenes. It’s possible the same could happen at 23andMe. The bankruptcy court’s approval on March 26 allows 23andMe to continue its operations and pay employees.

It’s a long road. The bankruptcy and sale process doesn’t wrap up overnight. It can take several months (or longer) for everything to play out.  

What Happens to My 23andMe DNA Data? 

One major concern of 23andMe’s filing is, of course, data security, as the company has information on genetic data for millions of users. The company has made headlines before on the subject, suffering a large data breach in 2023 that affected nearly 7 million people–about half its customers.  

The following year, all seven of 23andMe’s independent directors resigned from the board because they were unsatisfied with the CEO’s plan to privatize the company. 

Chapter 11 bankruptcy means that the company is still functioning “as usual”: in 23andMe’s case, processing the DNA kits, maintaining their website, and protecting users’ data. According to 23andMe, users’ access is unchanged, and customers will continue to have full access to their accounts, genetic reports and any stored data. 

The bankruptcy court’s approval of 23andMe’s initial Chapter 11 motions on March 26 allows the company to continue to pay its employees and maintain current operations. The court also The court also authorized the company to begin a process to sell all of its assets and approved bidding procedures for this process. It requires all potential buyers to honor 23andMe’s existing consumer privacy policies and data protections.

How Do I Delete my DNA Data (and Should I)? 

The announcement has understandably sparked concern and in some cases alarmist reactions from 23andMe users and press, with the Washington Post unequivocally encouraging readers to delete data. 

Some lawmakers have also expressed concerns. Over the weekend, California Attorney General Bob Bonta issued a consumer alert to Californian customers of 23andMe: “Given 23andMe’s reported financial distress, I remind Californians to consider invoking their rights and directing 23andMe to delete their data and destroy any samples of genetic material held by the company.”  

While it is wise to stay informed and take precautions, it is ultimately up to users themselves to make their own decisions regarding deleting their genetic data from 23andMe’s database.  

Diahan Southard, DNA expert, a Family Tree Magazine columnist, and author of Your DNA Guide, points out that users have three primary reasons to keep data at 23andMe: 

1. Using the company as a “bank” for your DNA sample 
2. Connecting with test takers whose DNA isn’t anywhere else, especially since 23andMe users aren’t necessarily genealogists
3. Taking a “wait-and-see” approach while the bankruptcy plays out—and who (if anyone) ends up owning the company 

“Filing for bankruptcy often signals a company’s desire to stay in business,” says Southard. “They are taking the opportunity to restructure. If it turns out they are sold to a company that you are uncomfortable with having your DNA sample, the data-privacy protection laws ensure that you will have an opportunity to delete it at that time.” 

In “An Open Letter to 23andMe Customers,” published on 23andMe’s blog on March 23, the company states, “The Chapter 11 filing does not change how we store, manage, or protect customer data.” It continues to detail that the company remains committed to its users’ privacy and “any buyer of 23andMe will be required to comply with applicable law with respect to the treatment of customer data.” 

How to download your genetic data: 

Regardless of what you choose, experts recommend downloading your raw DNA data—especially if you plan to ask the company to delete it. Users of 23andMe can transfer their data to another platform or preserve for personal storage by following these steps:  

1. Log into your 23andMe account on the website 
2. Go to https://you.23andme.com/user/ 
3. Scroll to the “23andMe Data” section at the bottom of the page 
4. Download your data 

Southard has a tutorial for downloading raw 23andMe data on her website. 

How to delete genetic data/test kit: 

1. Log into your 23andMe account on the website 
2. Go to https://you.23andme.com/user/ 
3. Scroll to the “23andMe Data” section at the bottom of the page 
4. Scroll to “Delete Data” 
5. Click “Permanently Delete Data” 
6. Don’t forget: Confirm your request—you will receive an email from 23andMe and must follow the link in the email to confirm your request 

How to destroy your 23andMe test sample: 

Deleting your physical DNA sample is different from deleting the genetic data in 23andMe’s database if you previously opted to have your saliva sample and DNA stored by 23andMe. To change that preference, you can do that from your account settings page under “Preferences.” 

How to revoke permission for your genetic data to be used in research: 

If you previously consented to 23andMe and third-party researchers to use your genetic data in research, you can revoke your consent in your account settings under “Research and Product Consents.” 

Note that this will only prevent your data from being used in future research. Your data (which has been anonymized—that is, disassociated with your name and other identifying information) will remain in any research studies that have already taken place. 

What Made 23andMe Unique Among Testing Companies? 

While 23andMe is one of the largest genetic testing companies in the world, the company itself is not a genealogy company. It was never about family history–it is a health company. On its “Our Story” webpage, 23andMe states “We are a mission-driven company with big dreams of using data to revolutionize health, wellness, and research.” Genealogy features added to the platform are used as a way to grow their DNA database while also generating revenue for the company. 

However, as 23andMe’s DNA database expanded, it became an unexpected goldmine for genealogists. While family history wasn’t the company’s primary focus, its growing pool of matches and DNA tools proved invaluable for uncovering hidden connections and breaking through research brick walls. 

Our Advice 

At a minimum, download your raw data and keep records of all key matches you have. Many users will likely pull their tests from 23andMe in the coming weeks, so DNA matches will disappear from your match list.  

23andMe doesn’t have a built- in feature to download your match list. You can manually copy and paste this information, but that will take a long time. Genealogy Explained created a tool to convert your 23andMe matches from JSON to CSV, which is available for free here. 

Ongoing Coverage

On March 26, 23andMe received approval from the U.S. Bankruptcy Court for its initial Chapter 11 motions, allowing it to pay employees and maintain operations. The court also authorized the company to begin a process to sell all of its assets and approved bidding procedures for this process. It requires all potential buyers to honor 23andMe’s existing consumer privacy policies and data protections. The company, with guidance from its investment banker, will solicit bids over the next 45 days.

On May 1, 2025, 23andMe filed a WARN document with California officials, as required by the state’s Worker Adjustment and Retraining Notification Act. The law requires companies to warn employees at least 60 days in advance of mass layoffs. It is reported that the company may have to lay off up to 233 employees, including the CEO and upper management employees. The WARN document highlights June 17 as an important date: when 23andMe is scheduled for the Sale Hearing in the Bankruptcy Court.

On May 19, 23andMe announced that it had reached a “definitive agreement” for the sale of the company to Regeneron Pharmaceuticals, Inc., a US-based biotech company. If approved by the bankruptcy court, 23andMe will have its new owner sometime this summer or fall. The agreement includes Regeneron’s “commitment to comply with the Company’s privacy policies and applicable law” regarding customer’s personal data. The agreement does not include the purchase of 23andMe’s Lemonaid Health subsidiary, which 23andMe plans to “wind down in an orderly manner.”

As part of the court-supervised sale process, 23andMe required all bidders to guarantee that they would comply with its privacy policies and applicable law. While the purchase agreement with Regeneron aligns with 23andMe’s privacy policies, a court-appointed, independent Consumer Privacy Ombudsman will also examine the transaction and the impact it could have on users’ privacy if the transaction is approved. That report will be presented to the bankruptcy court on June 10, 2025. The court will consider approval of the transaction in a hearing currently scheduled for June 17, 2025.

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Last updated May 20, 2025