The Sei Foundation announced on X on Thursday that it is considering buying 23andMe, a genetics firm that recently filed for Chapter 11 bankruptcy. If the acquisition is successful, Sei intends to transfer 23andMe’s massive DNA database onto its layer-1 blockchain network.
The Sei Foundation is in the process of placing its boldest DeSci bet yet.@Sei_FND is 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
This would allow the 15 million 23andMe users to have full ownership and control over their personal genetic information through encrypted on-chain infrastructure. This development represents one of the most daring endeavors in the growing decentralized science (DeSci) movement, and it could have important implications for the future of genetic data ownership and privacy.
The Sei Foundation’s potential acquisition of 23andMe’s dataset has significant implications, as it would transfer sensitive biometric data directly into the web3 space. This development comes after the collapse of 23andMe raised concerns about the security and monetization of such data.
The foundation, which has already invested $65 million in DeSci projects on its blockchain, framed the proposal as a way to empower users to control their DNA data and its potential for monetization.
Regulatory Red Flags
While AI firms have expressed interest in acquiring the data for model training, critics warn of potential legal and reputational risks for any buyer. DNA data’s immutable and personal nature means it could be considered a sellable asset under U.S. bankruptcy law, regardless of customer consent.
Sei Foundation proposes an alternative solution. By encrypting genetic data and giving users control over access, Sei aims to establish a secure data economy based on individual sovereignty rather than corporate profit.
The situation is already drawing scrutiny. Attorneys general in several U.S. states, including California, have urged 23andMe customers to request data deletion, citing privacy laws that grant residents the right to erase biometric data. However, under Chapter 11 rules, the company may be legally obligated to retain that information as part of its bankruptcy estate.
The Sei team says any buyer must prioritize ethics and data governance —and believes blockchain infrastructure is the answer. But legal experts caution that the regulatory gray area around biometric data sales may trigger lawsuits, especially if users never consented to their DNA being traded.
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