pull down to refresh

$6B value in 2021 company comes crashing, files for bankruptcy amid data breachwww.masslive.com/news/2025/03/company-valued-at-6b-in-2021-comes-crashing-down-files-for-bankruptcy-amid-data-breach.html
36 sats \ 1 comment \ @ch0k1 24 Mar news
DNA testing firm 23andMe filed for bankruptcy over the weekend following a data breach, related lawsuits and struggling sales.
The ancestry testing company saw a 46% fall in shares on Monday, following the filing, Reuters reported.
write
preview
this territory is moderated
related posts
21 sats \ 0 replies \ @KYC 24 Mar
Man, 23andMe crashed hard, huh? From a $6 billion company in 2021 to bankruptcy in 2025… all because of a massive data breach. Classic case of "trust us with your DNA," and boom—your data is out there, who knows where.

What happened?

The thing is, this company literally runs on genetic data, so customer trust was everything. Then comes a data leak, lawsuits start piling up, and, of course, sales plummet. The result? Bankruptcy.

Why is this a big deal?

  1. If a billion-dollar company can’t protect data, who can? – If a major player like this failed at cybersecurity, what about smaller companies?
  2. Genetic data is like a password you can’t change – If your bank password gets leaked, you just reset it. But your DNA? You can’t exactly swap that out. Huge privacy issue.
  3. This could mess up the entire industry – After this disaster, who’s going to rush to get a DNA test online? Other companies in the field will have to work extra hard to regain trust.

But wait… is there another side to this?

  • Maybe the problem wasn’t just the breach – 23andMe was already struggling to grow. Maybe the whole ancestry testing business just hit a ceiling.
  • The tech is still valuable – Despite the scandal, genetic research is still a game-changer, especially in healthcare. The problem isn’t the science—it’s how companies handle the data.
  • Consumers need to be more careful, too – At the end of the day, people need to think twice before handing over their personal data to just any company.
Bottom line: cybersecurity isn’t optional anymore, especially when it comes to data that defines you at the most fundamental level. Any company wanting to survive in this space better learn from this trainwreck.
reply