business
Bankruptcy Court Orders 23andMe Successor to Pay $46.75 Million to 2023 Hack Victims
A bankruptcy court ruled Tuesday that Chrome Holding must compensate victims of the 2023 data breach at genetics firm 23andMe. The $46.75 million settlement follows the company's bankruptcy and asset sale last year.
Jul 7, 7:47 PM·1m read1 source
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A California bankruptcy court judge ruled Tuesday that Chrome Holding must pay $46.75 million in compensation to victims of a 2023 data breach at genetics testing company 23andMe. Chrome Holding, which operates as TTAM Research Institute and is run by 23andMe co-founder Anne Wojcicki, acquired the company's assets last year in a bankruptcy auction for $305 million.
The settlement requires payment to Kroll Restructuring, which represents the victims, within five business days.
Kroll will then distribute the funds. BBC News reported that the 2023 hack exposed data from as many as 6.9 million people after hackers accessed roughly 14,000 user accounts. 23andMe filed for bankruptcy early last year.
The company compiles genetic profiles through DNA testing kits and has continued operations since the bankruptcy, selling kits online. It started in 2006, went public in 2021, reached a peak valuation of $6 billion, and has never turned a profit. The Information Commissioner's Office fined 23andMe £2.31 million after finding the firm failed to secure sensitive user data before the incident.
In May, California Attorney General Rob Bonta sued the company, stating that 23andMe lied to consumers about the severity of the breach and failed to take basic steps to protect users' data.
