The Sei Foundation is considering acquiring 23andMe to integrate genetic data with blockchain technology.
On March 23, the genetic testing company 23andMe announced that it would file for bankruptcy in the US, sparking fears about data privacy among users.
After 23andMe’s bankruptcy announcement, the Sei Foundation, which manages the layer-1 Sei blockchain, stated that it is evaluating the possibility of purchasing the company.
In a March 27 X post, the Sei Network announced that its foundation is considering acquiring 23andMe “to defend the genetic privacy of 15 million Americans“ by utilizing blockchain storage.
The foundation claims that if it acquires the biotechnology firm, it will transfer all genetic data onto the blockchain and empower users with ownership through encrypted, confidential transactions.
“We believe user data sovereignty is a matter of national security,” the Sei network’s announcement reads. “When an American biotech pioneer faces bankruptcy, personal genomic data of millions becomes vulnerable to parties that may not share the same values of transparency and open access.”
Four days earlier, 23andMe disclosed that it had sought Chapter 11 protection in the US Bankruptcy Court for the Eastern District of Missouri.
The company stated that it would keep its approach to storing, managing, and safeguarding customer data—allegedly containing genetic information for nearly 15 million people worldwide—the same.
As 23andMe faces bankruptcy, concerns over data privacy have resurfaced, especially as companies continue storing genetic details from millions of users.
In response to the bankruptcy filing, New York’s Letitia James and California’s Rob Bonta encouraged 23andMe customers to demand the removal of their personal data and the disposal of any DNA samples, asserting their privacy rights.
The officials emphasized that state regulations ensure 23andMe users retain control over their personal information.
After the network shared its post on X, Sei (SEI) briefly increased by roughly 3%, rising from $0.209 to $0.215.
Two months ago, the Sei Foundation launched a $65M fund to drive the growth of decentralized science (DeSci). The foundation wants to help startups using blockchain to improve scientific research and healthcare.
Over the next three to four years, the Sei Foundation hopes to invest between $100,000 and $2M in promising DeSci projects.
