Cambridge Analytica shuts down, files for bankruptcy

Cambridge Analytica shuts down, files for bankruptcy

The firm denies wrongdoing but says "unfounded accusations" have made it impossible to keep trading

Thursday, May 3, 2018

Cambridge Analytica is to shut down after it reportedly harvested data from Facebook users.

Investigations by the Guardian and Channel 4 showed data may have been taken without consent of users and used to influence elections.

Former employee Christopher Wylie blew the whistle on the company in March, claiming that 50 million Facebook users had their data harvested and used to manipulate the 2016 Trump election campaign.

Read more: Facebook data in Cambridge Analytica row was 'highly inaccurate'

Undercover footage shown by Channel 4 showed CEO Alexander Nix claiming that the data could influence elections.

A former employee also accused the Leave.EU campaign of misusing data supplied by Cambridge Analytica.

The company, and Facebook, have been investigated by the government as part of a Commons inquiry into fake news, but denies any wrongdoing.

Now it’s emerged that it’s shutting down.

Read more: Cambridge University criticises Mark Zuckerberg over Facebook data row

A statement on the website reads: “Earlier today, SCL Elections Ltd [parent company of] Cambridge Analytica… filed applications to commence insolvency proceedings in the UK.

“Over the past several months, Cambridge Analytica has been the subject of numerous unfounded accusations and, despite the company's efforts to correct the record, has been vilified for activities that are not only legal, but also widely accepted as a standard component of online advertising in both the political and commercial arenas.

"Despite Cambridge Analytica's unwavering confidence that its employees have acted ethically and lawfully, the siege of media coverage has driven away virtually all of the company's customers and suppliers.

"As a result, it has been determined that it is no longer viable to continue operating the business."

Listen to technology expert Tom Cheesewright explaining why Cambridge Analytica made the headlines in the video above.