23andMe Holding Co - Ordinary Shares - Class A Stock News

The US Federal Trade Commission (FTC) on Monday warned genetic testing firm 23andMe to honor its promise to protect people's personal information as it navigates bankruptcy.

Any purchaser of 23andMe assets should agree to be bound by the company's existing privacy policy, FTC Chairman Andrew Ferguson said.

23andMe, one of the first companies to provide direct-to-consumer genetic testing kits, has filed for bankruptcy. Since its founding in 2006, it has sold over 12 million DNA kits, with high-profile users including Oprah Winfrey and Warren Buffett.

The bankruptcy of consumer genetics testing company 23andMe last week led to widespread fears about the DNA of millions of Americans going on sale to the highest bidder. 23andMe has 15 million customers and with calls for users to delete their data, traffic to its website surged 526% on the day of its bankruptcy filing.

23andMe is going bankrupt — underscoring the great risks of investing in many of the companies that have gone public via mergers with special-purpose acquisition corporations.

The bankruptcy of 23andMe Holding Co. has thrust the issue of data privacy firmly into the spotlight as the DNA testing company looks to sell its most valuable asset: a vast trove of customers' genetic data.

The announcement that 23andMe is filing for bankruptcy and has put its genetic genealogy database up for sale has sent its customers into a bit of a privacy tizzy. On March 21, California Attorney General Bob Bonta issued a consumer alert with detailed instructions about how to delete one's data.

23andMe (NASDAQ:ME) shares rebounded more than 60% on Thursday after a US judge confirmed the genetic testing company is allowed to sell customer data as part of its Chapter 11 bankruptcy proceedings. This data, including medical and ancestry-related information from more than 15 million customers, is considered one of the company's most valuable assets.