Sei Foundation Plans to Acquire Biotechnology Company 23andMe: Gene Onboarding, Privacy Protection, and Data Sovereignty
23andMe Files for Bankruptcy, Sparkling Concerns About Genetic Privacy for 15 Million Users
On this week, 23andMe filed for Chapter 11 bankruptcy protection in the U.S. District Court for the Eastern District of Missouri, raising concerns among its millions of users about the potential leakage of genetic privacy.
Founded in 2006, 23andMe is a well-known genetic testing company that allows users to send in saliva samples to gain insights into ancestry analysis, health risks, and genetic traits. The company popularized consumer exploration of personal DNA through affordable and convenient genetic testing. It previously received early investment from Google and went public in 2021 through a SPAC merger.
(Is Genetic Testing a Scam? 23andMe Scandal Unfolds as Stock Price Drops to 70 Cents, Files for Bankruptcy)
Now, following the bankruptcy news, concerns about data leakage have arisen. Even though the company asserted that data would be properly preserved and managed while seeking buyers, it’s difficult to convince the public. In response, the Attorneys General of New York and California have called for the deletion of user personal data and destruction of DNA samples, emphasizing that state law protects users’ rights to control their sensitive information.
Sei Foundation Extends Acquisition Olive Branch: Building a “User-Centric” Genetic Platform
Yesterday, the Sei Foundation announced on the X platform that it is considering acquiring 23andMe and plans to integrate its vast genetic data onto the Sei blockchain network.
The Sei Foundation is in the process of placing its boldest DeSci bet yet. @Sei_FNDis officially exploring the acquisition of @23andMe to defend the genetic privacy of 15 million Americans and ensure their data is protected for generations to come. We believe user data…pic.twitter.com/c06R2QPyff
— Sei (@SeiNetwork) March 27, 2025
The Sei Foundation emphasized: “Through encryption and decentralized technology, we have the ability to return data ownership to users: When millions of sensitive genetic data may fall into opaque hands, we must act to protect data sovereignty and privacy security.” Following the acquisition news, the native token SEI rose from $0.209 to $0.215, experiencing a brief 3% surge before retreating, indicating that while the market has some expectations for the plan, it remains skeptical about the feasibility and regulatory risks of the “genetic on-chain” initiative.
Genetic On-Chain: From Vision to Practice in DeSci
The actions of the Sei Foundation align with the principles of “Decentralized Science (DeSci).” Through blockchain, DeSci promotes transparency in the research process and data, addressing issues of monopoly and resource inequity prevalent in traditional scientific fields. Previous reports indicated that DeSci could enable researchers to raise funds directly in a decentralized manner through organizations like DAOs, allowing users to control scientific data. If Sei successfully acquires 23andMe, it could become a groundbreaking model for DeSci in the field of genetics.
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Since last year, notable figures such as Andrew Kang, partner at Mechanism Capital, and Arthur Hayes, founder of cryptocurrency exchange BitMEX, have expressed optimism for this sector, naming protocols like Bio Protocol, Pump Science, and GLP1Science.
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The Critical Intersection of Genetic Data and Blockchain
The potential acquisition of 23andMe by the Sei Foundation is not just a corporate merger; it could become a nexus for privacy protection, data sovereignty, and internet technology. If successful, it will allow 15 million users to regain control over their genetic data and mark an important chapter for blockchain technology in medical and biotech applications.
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