Bankruptcy Sparks Data Concerns

When companies declare bankruptcy, the fallout often extends beyond finances—raising serious concerns about customer data. During liquidation or restructuring, sensitive digital and genetic information may be considered assets, potentially sold or transferred to third parties. This creates a gray area in privacy laws, leaving users vulnerable to misuse of their personal information. Bankruptcy doesn’t just impact investors; it challenges how securely and ethically companies treat the data entrusted to them.