23andMe after the data breach, the bankruptcy, and the fight over genetic data

23andMe's decline is the kind of corporate story that becomes far more interesting after the public stops watching. The first widely remembered hit came from its 2023 data breach, which exposed personal and genetic information connected to millions of customers and badly damaged trust in the company. But the second phase was even more significant. In March 2025, 23andMe filed for bankruptcy after weak demand and the breach's reputational fallout. State attorneys general pushed for stronger protection of customer data, and in April 2025 the company agreed to a court-appointed ombudsman with power to review how genetic information would be handled in bankruptcy and in any future sale. The sale itself then changed shape. Founder Anne Wojcicki's nonprofit later topped a competing bid, and in July 2025 a judge refused to block the sale. In September 2025, 23andMe then asked a bankruptcy judge to approve an expanded $50 million breach settlement. What began as a cybersecurity scandal turned into a larger question about what happens when a genetics company fails and its most sensitive asset is customer DNA data.