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Chair Cassidy Sounds Alarm on 23andMe Bankruptcy, Foreign Adversaries Potentially Accessing Americans’ Genetic Data


WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA), chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, raised serious concerns about the potential sale of 23andMe’s genetic database of over 15 million users. The sale creates the opportunity for foreign adversaries, including the Chinese Communist Party, to acquire the sensitive genetic data of millions of Americans.  

“Safeguarding sensitive consumer data is a top goal to protect our national security,” wrote Dr. Cassidy. “Chinese companies have already taken steps to collect genetic data across the world that could be used for adverse purposes. These adversaries may similarly seek to acquire 23andMe’s database and potentially use it against Americans.” 
 

Last month, 23andMe filed for bankruptcy, and announced that it intends to sell all of its assets to pay off debts. This includes its genetic database, which holds the genetic data of 15 million customers. 23andMe has yet to lay out a plan to ensure that its database is not acquired by a hostile actor or potentially misused. The company has also thus far opposed the appointment of a neutral third party to ensure that any potential sale of consumer data upholds privacy standards. This is a common practice in bankruptcy proceedings to ensure that consumer data is safeguarded. 

The Department of the Treasury, through the Committee on Foreign Investment in the United States (CFIUS), has broad authority to review transactions that may impact the national security of the United States, including those that are part of bankruptcy proceedings. Cassidy called on Treasury to use its resources, including a CFIUS review, to prevent foreign adversaries from obtaining the genetic information of millions of Americans. 

This comes as 23andMe has struggled to protect its customer data. In 2023, Cassidy raised concerns about the company’s security practices after hackers were able to access and sell 1.3 million users’ sensitive genetic and personal information on the dark web. 

Read the full letter to 23andMe here.  

Read the full letter to Treasury here

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