Cambridge Analytica, a British data firm hired by the Trump campaign, on Thursday officially filed for Chapter 7 bankruptcy for its US branch.
The company filed for chapter 7 protection Thursday night in the U.S. Bankruptcy Court in NY along with the U.S. arm of its consulting business, SCL Group.
Cambridge Analytica listed assets in the range of $100 001 to $500 000 and liabilities in the range of $1 million to $10 million.
Christopher Wylie, the former Cambridge Analytica employee who blew the whistle on that company's nefarious activities in the 2016 election, told a Senate committee that Steve Bannon hired them in part to engage in efforts to suppress the votes of African-Americans. Remember that Cambridge Analytica was created by the Mercers, billionaire backers of both Bannon and Trump.
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This information "might have been shared or misappropriated" by Russian entities, Wylie said, because of then-Chief Executive Officer Alexander Nix's contacts with with Russian oil company Lukoil PJSC. Nix in a BBC interview later said the allegations were "unfounded and extremely unfair". "As a result, it has been determined that it is no longer viable to continue operating the business".
Cambridge Analytica faces lawsuits in the USA over the Facebook data collection. They say they face ongoing damages because their private data is in the hands of the company.
Facebook remains in damage-control mode in the wake of Cambridge Analytica fiasco.
Zuckerberg has appeared before U.S. congressional committees to testify on data privacy and will meet leaders of the European Parliament soon. House Democrats who met with him in April called his information "disturbing".
The stolen data, which the firm obtained through a Facebook quiz app, sparked a probe by Congress into Facebook's privacy and data collection policies.