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HomeFinance NewsInvestigation Launched into 23andMe for Customer DNA Protection

Investigation Launched into 23andMe for Customer DNA Protection

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The Heritage Foundation’s senior fellow for China strategy, Dr. Michael Pillsbury, has commented on potential strategies China might employ to counteract former President Donald Trump’s trade policies.

Meanwhile, as the genetics testing company 23andMe pursues the sale of millions of Americans’ consumer data amid bankruptcy proceedings, Senate Health, Education, Labor and Pensions (HELP) Committee Chairman Bill Cassidy has initiated an investigation. This investigation aims to ensure that users’ medical and DNA data remain secure.

According to documents received by FOX Business, Senator Cassidy expressed his concerns to Treasury Secretary Scott Bessent and 23andMe executives. He pointed out the risk that Chinese businesses or other foreign adversaries might attempt to acquire 23andMe’s database and potentially misuse it against U.S. citizens.

Cassidy has urged Bessent to conduct a review under the Treasury’s Committee on Foreign Investment in the United States (CFIUS), which oversees transactions impacting national security. The Treasury has declined to comment on the matter.

23andMe recently filed for Chapter 11 bankruptcy protection and revealed plans to sell most of its assets. The company assures that it is dedicated to safeguarding customer data and emphasizes that data privacy will be a key factor in any transactions.

The senator referenced a report from American intelligence officials, published in 2021, which highlighted attempts by Chinese entities to collect genetic data globally for potentially harmful purposes. In addition, he criticized 23andMe for declining to employ a neutral third party to oversee the sale of its consumer data, opting instead to rely on its own privacy policy.

Amid these proceedings, the Justice Department released a final rule last year prohibiting the sale of genomic data to certain countries, including China.

Additionally, Senator Cassidy remarked on a data breach in 2023 that compromised nearly 7 million customers’ information. In 2024, 23andMe resolved the issue by agreeing to a $30 million settlement and committing to security monitoring for three years.

Cassidy has requested that 23andMe provide a response detailing how it intends to handle the secure sale of consumer data by April 23.

After the company’s closure, Anne Wojcicki, co-founder and CEO of 23andMe, stepped down from her role.

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