23andMe probe launched to prevent customer DNA data from being sold to China or other bad actors

Exclusive: As genetic testing company 23andMe seeks to sell the consumer data of millions of Americans as part of its bankruptcy proceedings, Senate HELP Committee Chairman Bill Cassidy is opening up a probe into the company to ensure that users’ medical data and DNA do not fall into the wrong hands.

In a pair of letters obtained by FOX Business, Cassidy, R-La., raised concerns with Treasury Secretary Scott Bessent and 23andMe executives over the risk that Chinese companies or other foreign adversaries may "seek to acquire 23andMe’s database and potentially use it against Americans."

Cassidy called on Bessent to conduct a review of the transactions using the Treasury’s Committee on Foreign Investment in the United States (CFIUS), a panel that conducts oversight of transactions that may impact America’s national security. A Treasury spokesperson declined FOX Business' request for comment. 

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The Louisiana senator cited a 2021 report authored by American intelligence officials as evidence that "Chinese companies have already taken steps to collect genetic data across the world that could be used for adverse purposes."

23andMe announced last month that it had voluntarily filed for Chapter 11 bankruptcy protection and intended to sell substantially all of its assets. In a press release announcing its entrance into bankruptcy proceedings, the company said it is "committed to continuing to safeguard customer data" and that "data privacy will be an important consideration in any potential transaction."

Three days after that announcement, 23andMe said that a judge had greenlit the company’s plan to auction all of its assets as part of its proceedings. In a March 26 press release, the company noted that potential buyers must "agree to comply with 23andMe’s consumer privacy policy and all applicable laws with respect to the treatment of customer data."

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The Justice Department issued a final rule last year prohibiting the sale of genomic data to "countries of concern," such as China.

In his letter to 23andMe executives, Cassidy criticized the company’s rejection of calls to appoint a neutral third party to oversee the sale of its consumer data. "Instead," Cassidy wrote, "23andMe has relied on its own privacy policy to avoid third-party participation that would help ensure 23andMe remains committed to consumer privacy."

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In addition to concerns over the company’s handling of its current bankruptcy proceedings, Cassidy also noted that 23andMe suffered a data breach in 2023 that affected nearly 7 million customers. In light of that episode, which 23andMe resolved in 2024 by agreeing to pay $30 million and provide three years of security monitoring to settle a lawsuit over its handling of consumer data, Cassidy said that "it is unclear how the company will commit to safeguarding data going forward."

Cassidy requested that 23andMe respond to questions over how it will safely handle the sale of consumers’ data by April 23.

23andMe co-founder and CEO, Anne Wojcicki stepped down shortly after the company folded.