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Cambridge Analytica Files for Chapter 7 Bankruptcy with Debts of up to $10 Million

Following a damaging privacy scandal, Cambridge Analytica has filed for bankruptcy as it begins to shut down the company. It flatly denies any wrongdoing, and will soon have to answer to British lawmakers about inconsistencies in evidence.

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has filed for bankruptcy after a damaging scandal surrounding and political campaigns. The filing is another step in the closing of the company and its UK branch, which began in May.

The petition was made at the U.S Bankruptcy Court in the southern district of New York and revealed some financial information. The LLC listed assets between $100,001 and $500,000, and liabilities between $1 and $10 million. The submission was signed on behalf of the firm's board by Jennifer and Rebekah Mercer, daughters of businessman Robert Mercer.

Robert allegedly offered Cambridge Analytica's services to Nigel Farage's UKIP in order to secure a successful Brexit vote. The company has also been accused of interfering in the 2016 US presidential election, with CEO Alexander Nix shown giving examples of underhand tactics. Mercer backed the firm to the tune of $15 million during its formation.

Counter-Evidence Under Question

According to Facebook, 87 million user's information was exposed to Cambridge Analytica, via the app ‘This is Your Digital Life', which took advantage of the social media's API to pull in friends, interests, messages, posts, and more.

Cambridge Analytica flatly denies any wrongdoing, and says its closure is due to “numerous unfounded accusations”. Facebook has since suspended approximately 200 apps on suspicion of wrongdoing, with plans to further crackdown.

Nix has accepted summons to appear in front of Britain's Digital Culture, Media, and sports committee. There he will face questions about inconsistencies in the evidence previously provided.

SourceReuters
Ryan Maskell
Ryan Maskellhttps://ryanmaskell.co.uk
Ryan has had a passion for gaming and technology since early childhood. Fusing the skills from his Creative Writing and Publishing degree with profound technical knowledge, he enjoys covering news about Microsoft. As an avid writer, he is also working on his debut novel.

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