DNA testing company 23AndMe filed for bankruptcy in the US following what was reported as weak demand since the catastrophic data breaches in 2023.
As a Reuters It has been reportedFounding CEO Anne Wojcicki has announced his resignation, but he has tried to buy the company quickly with a much lower rating than it once peaked.
Fortune originally reported that Wojcicki has recently provided more $74 million For the company, but soon updated that report with SEC filing The purpose is to display new purchase offers worth $42 million.
The most recent valuation is light years away from the company's $6 billion It is reportedly After it was released in 2021.
As Blaze News pointed out in early 2024, 23andme's reputation was a huge hit when a customer of a DNA-identifying company was subjected to a data breach. This has resulted in dozens of lawsuits, totaling nearly half of the company's users.
“The user was recycled for negligence and failed to update the password…”
In a letter sent to users of law firms representing 23andMe, the company shifted responsibility to users using a “recycled” password.
Cybercriminals used a method known as “qualification stuffing.” This includes hackers who try to log in to various online accounts belonging to the same person using login credentials obtained from other hacks.
The 23andMe hack was achieved this way, with hackers accessing 14,000 user accounts and using that access to further enter the database of the company of users who opted for the DNA kinship function of the website.
“As mentioned in the October 6, 2023 blog post on 23andme, 23andme believes that if a user recycles their own login credentials, that is, if the user uses the same username and password they are using, then illicits fraudulent actors can access a particular user account. 23andme.com Like other websites that were previously subject to security breaches, users have been recycled in the past and failed to update their passwords following these past security incidents unrelated to 23andMe,” the letter argues.
Anne Wojcicki is a sister to recently deceased YouTube CEO Susan Wojcicki, and has never seen YouTube content creators due to ongoing censorship and monetization issues.
Due to family connections, users asked where their data went, how it was used, and why the founding CEO wanted to buy back the failed company.
23AndMe has not been able to maintain its user base since the data breach. Marketing ploys such as ongoing feedback and personalized wellness plans did not attract repeat customers.
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