How 23andMe fell from a $6 billion valuation to Chapter 11 bankruptcy, the 2025 sale that renamed it Chrome, and what it all meant for the data breach class action settlement.
What Happened to 23andMe?
23andMe, the genetic testing company, filed for Chapter 11 bankruptcy protection in March 2025 in the U.S. Bankruptcy Court for the Eastern District of Missouri. After going public in 2021 at a peak valuation of roughly $6 billion, the company's value fell to under $100 million by 2025 amid declining revenue, operational challenges, and the fallout from a major 2023 data breach.If you are looking for the settlement claim details, benefit tiers, and payment status, see our dedicated 23andMe data breach settlement page. This page focuses on the bankruptcy itself and what it meant for the case.
Why Did 23andMe File for Bankruptcy?
Several factors contributed to the company's decline:• The 2023 data breach: a cyberattack exposed the personal information of about 6.4 million U.S. customers, triggering multiple lawsuits, regulatory scrutiny, and lost consumer trust.
• Financial struggles: the company faced ongoing losses, job cuts, the wind-down of its therapeutics programs, and a substantial deficit.
• A collapsing valuation: the post-IPO market value fell from roughly $6 billion to under $100 million, leaving the company unable to fund operations on its own.
To navigate the proceedings, 23andMe secured debtor-in-possession financing to support operations during the bankruptcy.
The 2025 Sale and the Rename to Chrome
During the bankruptcy, 23andMe's assets were put up for sale. In 2025, the bankruptcy court approved a sale to TTAM Research Institute, a nonprofit led by 23andMe co-founder Anne Wojcicki. After the sale, 23andMe Holding Co. and 23andMe, Inc. changed their legal names to Chrome Holding Co. and ChromeCo, Inc. For continuity, the settlement notice and court filings still refer to the company as 23andMe.What the Bankruptcy Meant for the Data Breach Settlement
The consolidated data breach class action — originally filed as In re: 23andMe, Inc. Customer Data Security Breach Litigation in the Northern District of California — was resolved inside the bankruptcy in the Eastern District of Missouri. The Bankruptcy Court granted final approval of the settlement on January 30, 2026.In a June 2026 filing, the plan administrator set the distribution at $46.75 million — below the $50 million cap the court had authorized — with about $32.5 million allotted to resolve the class claims and more than $14 million used to pay claims administrator Kroll. The claim deadline of February 17, 2026 has passed, and the official settlement website states that payments will not be distributed until the bankruptcy reconciliation process is resolved, which may take several months or longer. For the full benefit tiers, eligibility, and payment timeline, see the 23andMe data breach settlement page.
What Customers Should Know About Their Genetic Data
Customer data transferred with the company's assets to the new owner under the court-approved sale. Customers who no longer want their information stored can delete their account and request destruction of their stored sample and data through their 23andMe account settings.Because Social Security numbers and other sensitive data were exposed in the 2023 breach, it remains wise to monitor your credit and watch for suspicious activity. If you want to compare other genetic and privacy cases, see our investigations into FamilyTreeDNA and MyHeritage genetic privacy claims.
Frequently Asked Questions
Why did 23andMe file for bankruptcy?
23andMe filed for Chapter 11 in March 2025 after years of declining revenue, an inability to reach profitability, and the fallout from the 2023 data breach. Its value had fallen from roughly $6 billion after its 2021 IPO to under $100 million by 2025.
Is 23andMe still in business?
Yes, under new ownership. In 2025 the bankruptcy court approved a sale to TTAM Research Institute, a nonprofit led by co-founder Anne Wojcicki, and the company was renamed Chrome Holding Co. and ChromeCo, Inc.
What did the bankruptcy mean for the data breach settlement?
The settlement was resolved inside the bankruptcy. The U.S. Bankruptcy Court for the Eastern District of Missouri granted final approval on January 30, 2026, and the plan administrator set a $46.75 million distribution in June 2026. The claim deadline has passed and payments are pending the bankruptcy reconciliation process.
What happened to my genetic data after the bankruptcy?
Customer data transferred with the company's assets to the new owner under the court-approved sale. You can still delete your account and request destruction of your stored sample and data through your 23andMe account settings.
Sources
- In re Chrome Holding Co., et al. (f/k/a 23andMe Holding Co. and 23andMe, Inc.), Case No. 25-40976, U.S. Bankruptcy Court for the Eastern District of Missouri
- In re: 23andMe, Inc. Customer Data Security Breach Litigation, Case No. 24-md-03098-EMC, U.S. District Court, Northern District of California
- Official Settlement Website: 23andMeDataSettlement.com
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