Privacy Concerns Escalate as 23andMe Files for Bankruptcy

Following 23andMe's bankruptcy filing, New York Attorney General Letitia James advised users to secure data due to privacy worries. Concerns over data handling by prospective buyers led many users to delete their accounts, while shares plummeted. The firm had sold genetic data to major firms, raising significant privacy issues.

New York Attorney General Letitia James has warned users of the DNA testing company 23andMe to secure their data amid escalating privacy concerns. This comes after the company filed for bankruptcy due to falling demand for its services.

As users grapple with uncertainties about how their data might be handled by potential new owners, many have elected to delete their accounts. The company's shares took a significant hit, with values dropping by 11% to 65 cents following the bankruptcy filing, and a drastic 59% fall the previous day.

The situation underscores broader implications regarding genetic data security, as 23andMe has a history of selling data to companies. This has prompted legal actions and intensified calls for stricter regulatory oversight in safeguarding personal genetic information.

(With inputs from agencies.)