Overview
- A 42-state coalition secured an $18 million immediate payment from 23andMe's bankruptcy estate, a settlement that the attorneys general announced Monday to cover part of claims tied to the 2023 breach.
- South Carolina will receive $280,000 and Kentucky will receive $259,375 as their shares of the $18 million distribution that is being allocated among 42 states.
- Investigators concluded the breach, which exposed data from about 6.9 million customers, grew from credential-stuffing attacks and that 23andMe lacked basic safeguards such as multifactor authentication, password blocklists, rate limiting, and sufficient logging and monitoring.
- 23andMe filed for Chapter 11 in 2025 and its assets were sold to TTAM Research Institute (now re-registered as 23andMe Research Institute), while a separate $46.75 million class-action fund has been transferred to Kroll for later claims distribution.
- Actual payments to consumers and many state distributions could take months because bankruptcy reconciliation and administrative processing must finish, and consumers were required to file claims by the Feb. 17 deadline to be eligible.