Cambridge Analytica Announces Closure, Files for Bankruptcy

Cambridge Analytica announced it will shut down its operations and will file for bankruptcy.

"The company is immediately ceasing all operations," it said on Wednesday, announcing bankruptcy proceedings would soon begin. Cambridge Analytica announced a pair of bankruptcy proceedings in the UK and US District Court in Manhattan.

In its statement on Wednesday, the company said it maintains "unwavering confidence that its employees have acted ethically and lawfully," but that "the siege of media coverage" had driven away its customers and suppliers.

"As a result, it has been determined that it is no longer viable to continue operating the business, which left Cambridge Analytica with no realistic alternative to placing the Company into administration," the statement read.

The company cited that the present scandal dried up its ton of potential clients. “The siege of media coverage has driven away virtually all of the Company’s customers and suppliers,” the firm noted.

Cambridge Analytica said it had been "vilified" for legal activities that are a "standard component" of advertising in the political world.

The company has been accused of acquiring data of Facebook users who took “this is your digital life” – a personality quiz. There were about 305,000 people who took the quiz but Facebook said it gathered information on up to 87 million people— meaning the friends of the users who took the quiz were affected, as well. There were claims that the data was sold to Cambridge Analytica used to psychologically profile voters for the 2016 US election and EU referendum.

RELATED: Twitter Data Also Sold to Cambridge Analytica Researcher

Investigations Continue

However, the investigations will further continue.

The Information Commissioner's Office (ICO) said its investigation will still "pursue individuals and directors".

Damian Collins, chair of the Commons Select Committee for Digital, Culture, Media, and Sports (DCMS) tweeted:  Cambridge Analytica and SCL group (its parent company) cannot be allowed to delete their data history by closing. The investigations into their work are vital.

He said in a report that they have to make sure that the closing is not an attempt to run and hide, that these companies are not closing down to try and avoid them being rigorously investigated over the allegations that are being made against them.

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