A judge has granted bankrupt genetic testing company 23andMe Holding Co. permission to seek potential buyers for customers’ medical and ancestry-related data, which is considered the most valuable asset in the insolvency case. This has raised concerns about privacy and security as the company undergoes liquidation.

To facilitate the sale, the company set tight deadlines for bids, with definitive offers due by May 7 and a final hearing scheduled for the following month. However, US Bankruptcy Judge Brian C. Walsh has instructed the company to extend the timeline by two weeks to allow for creditor input before a final decision is made on the buyer.

During the bankruptcy hearing in St. Louis, Walsh expressed that the original timeline was challenging and decided to postpone the final court hearing for the sale to June 17. Customers and officials have raised concerns about the auctioning of sensitive genetic data and the company's actions leading up to the bankruptcy filing.

Despite having amassed genetic data from over 15 million customers, 23andMe has not been profitable since its public listing in 2021. The genetic samples and data have now become the company's most marketable asset, causing apprehension among customers and bankruptcy officials about the possible auction of their private information.

During the hearing, it was emphasized that oversight is necessary to protect customers' privacy during the sale process. The US Trustee's office recommended the involvement of a privacy ombudsman to ensure the protection of customers' genetic information. The company representatives did not comment on the data's value.