Interim CEO Joseph Selsavage informed lawmakers on Tuesday that approximately 1.9 million customers—or roughly 15% of 23andMe’s user base—have requested the deletion of their genetic data since the company entered bankruptcy proceedings earlier this year.
Speaking at a hearing before the House Oversight Committee, Selsavage addressed heightened concerns surrounding the privacy and security of customer information following the firm’s filing for bankruptcy protection in March. Lawmakers particularly focused on the fate of millions of users’ genetic data, fearing it might ultimately fall into irresponsible or unscrupulous hands.
These privacy worries intensified when pharmaceutical giant Regeneron acquired 23andMe at a court-approved bankruptcy auction in May with an offer of $256 million. Regeneron purchased both the company itself and its extensive databases of consumer genetic information, announcing plans to leverage that data in future drug-discovery initiatives. Despite pledging that it will uphold the genetic testing firm’s prior privacy policies, the sale continues to stir controversy around data stewardship.
The acquisition now awaits final approval by a federal bankruptcy judge, who is expected to review and decide on the deal later in June.
Adding to customer concerns is the lingering fallout from a significant cybersecurity breach that occurred one year ago, which compromised sensitive genetic and personal information belonging to roughly 6.9 million of 23andMe’s customers. At the time, the company blamed the breach on users who failed to implement multi-factor authentication, rather than accepting direct responsibility for the security lapse or acknowledging its slow detection of the incident.
Amplifying these privacy concerns, more than 24 states—including Florida, New York, and Pennsylvania—have filed lawsuits in an effort to prevent the sale of customer data without explicit consent. Authorities argue that the private and deeply personal genetic information of approximately 15 million customers cannot legally be transferred or sold without each individual’s clear permission.