Sei Foundation Pursues 23andMe Acquisition, Highlighting Data Privacy as a Core Objective

The Sei Foundation is exploring acquiring 23andMe, the ancestry testing company. While the acquisition has broader implications, a core objective is addressing concerns about the privacy of users' genetic data, Sei Foundation said in a statement.

The Sei Foundation announced its intentions on Friday, stating it is in the process of placing its "boldest DeSci bet yet" by pursuing the acquisition of 23andMe. The foundation aims to "defend the genetic privacy of 15 million Americans and ensure their data is protected for generations to come," making this a key driver of their pursuit.

ei Foundation emphasized that user data sovereignty is a matter of national security. In its statement, the foundation argued that 23andMe's bankruptcy leaves the personal genomic data of millions vulnerable to parties that may not prioritize transparency and open access.

Sei's vision for 23andMe includes deploying 23andMe on the Sei blockchain, returning data ownership to users through encrypted, confidential transfers, and allowing users to choose how their data is monetized and share in the revenue.

It also highlighted the potential risks associated with 23andMe's data falling into the wrong hands, stating that the genomic fingerprints of millions would be subject to the free market, users would lack control over who accesses their data, and there would be few safeguards on how this intimate data might be used.

The Sei Foundation drew a parallel between its belief in the sovereign ownership of financial assets and its vision for a " Sovereign Genome ," asserting that genetic code should belong to its owner permanently.

If the Sei Foundation acquires 23andMe, it pledges to ensure the health data of Americans survives on the blockchain, enable users to participate in the economics of their data, require direct user opt-in for data partnerships, ensure scientific breakthroughs benefit humanity, and allow users to revoke consent at any time.

This potential acquisition comes as 23andMe faces significant challenges. The company filed for bankruptcy protection on March 23 , citing weak demand for its ancestry testing kits. 23andMe's financial struggles were compounded by a 2023 data breach that exposed the personal data of nearly 7 million customers over a five-month period, damaging the company's reputation and raising concerns about data privacy.

The bankruptcy filing has raised concerns among officials, including the U.S. Federal Trade Commission (FTC) and California Attorney General Rob Bonta, about the potential sale or transfer of Americans' personal information collected by 23andMe. The FTC has stated that any purchaser of 23andMe assets should agree to be bound by the company's existing privacy policy, Reuters reported .

23andMe's market value peaked at $6 billion in 2021, following its public listing via a SPAC, but demand for its ancestry testing kits has since waned. The company has also faced challenges in retaining customers and has laid off employees and stopped the development of therapies.