The foundation behind the layer-1 blockchain, Sei, announced it was exploring the acquisition of the genetic testing company 23andMe after the firm filed for bankruptcy.

twork Foundation Explores Acquisition of Genetic Testing Company 23andMe After the Firm Filed for Bankruptcy

The layer-1 blockchain network Sei said its foundation was exploring the possibility of acquiring the genetic testing company 23andMe (NASDAQ:MEGI) after the firm filed for bankruptcy.

In an X post on March 27, the network said its foundation was considering purchasing 23andMe “to defend the genetic privacy of 15 million Americans.” The company’s DNA data would be put on the blockchain if the firm is acquired, according to the foundation. If it acquires the biotechnology company, it plans to deploy all the genetic information on the blockchain and “return data ownership to users through encrypted, confidential transfers.”

“We believe user data sovereignty is a matter of national security,” said the Sei network. “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.”

The announcement came roughly four days after 23andMe said it had filed for Chapter 11 protection in the US Bankruptcy Court for the Eastern District of Missouri. The company said at the time there would be “no changes to the way [it] stores, manages, or protects customer data,” which reportedly includes genetic information from roughly 15 million people globally.

The 23andMe bankruptcy has, for many, reignited concerns about data privacy in an age in which companies have caches of genetic information from millions of people.

After the bankruptcy announcement, New York State Attorney General Letitia James and California Attorney General Rob Bonta urged 23andMe users to contact the company to delete their personal data, saying they had a right to privacy and to request any DNA samples be destroyed. The two authorities said state laws gave 23andMe users control of their own data.

The price of the network’s Sei (SEI) token briefly rose from $0.209 to $0.215 after the network’s X post — a roughly 3% increase.