Sei Foundation eyes $65M DeSci fund to secure 23andMe’s genetic data

The Sei Foundation, the nonprofit behind the layer-1 blockchain Sei (CRYPTO:SEI), is exploring an acquisition of bankrupt genetic testing firm 23andMe to safeguard the genomic data of 15 million users through blockchain integration.

The move follows 23andMe’s Chapter 11 bankruptcy filing on March 23, which raised concerns about data privacy and national security risks.

Sei’s proposal involves migrating 23andMe’s genetic data onto its blockchain, enabling users to retain ownership through encrypted transfers and control how their data is monetised.

The foundation framed this as a “boldest DeSci bet yet,” aligning with its $65 million venture fund launched earlier this year to support decentralised science (DeSci) startups.

“We believe user data sovereignty is a matter of national security. 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 Sei Foundation stated in an X post.

The announcement coincided with warnings from New York and California attorneys general urging 23andMe users to delete their data, citing state laws granting individuals control over their genetic information.

Sei’s SEI token saw a brief 3% price surge following the news, though gains were partially pared.

While 23andMe assured customers that its bankruptcy filing would not affect data management practices, the Sei Foundation’s initiative underscores broader debates about genomic data security in corporate insolvencies.

The acquisition’s feasibility remains uncertain, pending further developments in 23andMe’s restructuring process.

At the time of reporting, the Sei (SEI) price was $0.20261.