DNA Data at Risk: 23andMe’s Bankruptcy Spurs Blockchain Privacy Debate

The DNA testing giant 23andMe recently filed for Chapter 11 bankruptcy, triggering widespread concerns over the fate of its vast genomic database. With over 15 million users having shared their DNA with the company, privacy advocates and government officials are urging individuals to download and delete their data before it is sold to the highest bidder. Meanwhile, blockchain-based projects are making a case for a decentralized approach to genomic data storage, promising enhanced privacy and security.

### 23andMe’s Privacy Concerns Resurface

For years, 23andMe has marketed itself as a platform offering ancestry insights and health-related genetic reports. However, its core business model has relied heavily on selling anonymized genetic data to pharmaceutical companies and researchers. While the company has always stated that data is only shared with user consent, around 80% of customers have opted into this arrangement, often unaware of the long-term implications.

The issue escalated in March 2025 when a judge officially approved the sale of 23andMe’s user data as part of the bankruptcy proceedings. Privacy experts have warned that a new owner may not uphold the same privacy standards, leaving users’ most sensitive biological information vulnerable.

Security breaches have only amplified concerns. In 2023, hackers stole genetic data from nearly 7 million users, with evidence suggesting the breach specifically targeted individuals of Ashkenazi Jewish and Chinese descent. Experts have warned that such leaks could lead to identity theft or, in extreme cases, the development of targeted bioweapons.

### The Blockchain Solution: A New Way to Store DNA Data?

As concerns over data security mount, several blockchain-based initiatives have emerged, offering an alternative to centralized genomic storage. These projects propose decentralized, user-controlled storage systems that promise to give individuals full ownership of their genetic data.

One of the leading contenders in this space is Genomes.io, which has seen a surge in new users since 23andMe’s bankruptcy. The company encrypts genomic data and stores it in private "vaults," ensuring that only the user holds the decryption keys. Users can then selectively grant access to researchers in exchange for compensation.

Another blockchain initiative, GenoBank, is pushing a different model: tokenizing DNA data as “BioNFTs.” These unique digital assets allow individuals to retain control over their genetic information, providing an added layer of anonymity when engaging with research institutions.

The Sei Foundation has also expressed interest in acquiring 23andMe’s data and transitioning it onto a blockchain-based infrastructure. The foundation argues that decentralization would protect user privacy while ensuring that genomic data remains accessible for scientific advancements.

### Challenges of Blockchain-Based Genomic Storage

Despite the enthusiasm surrounding blockchain solutions, significant challenges remain. Storing genomic data on a blockchain—especially raw DNA sequences—can be prohibitively expensive. A full genome file can range up to 30GB in size, meaning that uploading the genetic data of all 15 million 23andMe users could cost hundreds of millions of dollars.

Additionally, if users lose access to their private keys, they risk permanently losing their genomic data. Moreover, while blockchain networks can provide strong encryption, they are not immune to cyberattacks, raising concerns about the potential theft of sensitive genetic information.

Regulatory frameworks also complicate the transition. Laws like the European Union’s General Data Protection Regulation (GDPR) impose strict rules on data storage and transfer, which blockchain-based solutions must navigate carefully.

### The Future of DNA Data Ownership

As the dust settles on 23andMe’s bankruptcy, the debate over genomic data privacy continues to intensify. While blockchain offers a compelling alternative, it is not without its drawbacks. What remains clear is that individuals must take an active role in protecting their genetic data. Privacy advocates strongly advise users to download and delete their 23andMe data before it falls into unknown hands.

With concerns over data breaches and misuse growing, the call for decentralized, user-controlled solutions may become louder. Whether blockchain can truly safeguard genetic information while balancing accessibility and privacy remains an open question—but one that will shape the future of

personal genomics for years to come.

Source - https://cointelegraph.com/news/blockchain-23andme-dna-data-bankruptcy

This is non-financial/medical advice and made using AI so could be wrong.