Data Privacy
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Data Security
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Video
Lawyer Jonathan Armstrong on Legal, Ethical Fallout From Looming 23andMe Auction
The financial collapse of personal genomics giant 23andMe raises an urgent question: What happens to your most intimate data when the company holding it goes bankrupt?
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With auctions looming for the firm’s assets – including customers’ genetic data – Jonathan Armstrong, partner at Punter Southall Law, warns of cascading legal, ethical and security consequences. This development comes on the heels of an October 2023 credential-stuffing hack in which cybercriminals claimed to have stolen “20 million pieces of code.”
“There are effectively two auctions going on in parallel,” Armstrong said. “One is a dark web auction with data that’s been extracted from this data breach. And the second is a sort of what you might call ‘legit’ auction as part of its assets in the bankruptcy.”
Armstrong outlined the legal quagmire facing any organization acquiring 23andMe’s data, from inherited GDPR obligations to the complexity of fragmented ownership. “Whoever acquires this data is also acquiring responsibility,” he said. “They all have to follow those data subject rights outlined in GDPR.”
With sensitive biometric and ethnic data exposed – and allegations that some data was used in AI training – the case spotlights risks that persist long after a breach or bankruptcy. “Once data is used in a big pot to train AI, then it’s often hard to split it out again,” Armstrong said.
For CISOs, the message is clear: Genomic data isn’t just high-value – it’s high-risk. Armstrong urges early security design, testing deletion workflows and transparency with users, especially in high-stakes sectors. “Security has got to be built in, and even if you’re just a startup, then you’ve got to consider that from the very start.”
In this video interview with Information Security Media Group, Armstrong also discussed:
- The regulatory obligations facing any buyers of 23andMe’s genetic data through bankruptcy asset sales;
- The legal and ethical risks of AI models trained on biometric data from 23andMe users;
- Why CISOs must prepare for failure when automated deletion and access tools break down during data crises.
Armstrong is a lawyer specializing in compliance and technology. He is regarded as one of the foremost cybersecurity experts and is active in advising clients on GDPR compliance and AI risks and opportunities.