Cambridge Analytica shutting down, files for bankruptcy

The firm is ceasing operation amid ongoing Facebook data controversy.

Cambridge Analytica, the U.K.-based data mining firm Facebook accuses of misusing data from up to 87 million of the social media giant’s user profiles during the 2016 presidential campaign, announced Wednesday that the company was "ceasing all operations."

The firm also announced a pair of bankruptcy proceedings in the U.K. and U.S. District Court in Manhattan. A search of Manhattan's Southern District Court bankruptcy docket did not include Cambridge Analytica's proceeding at the time of the announcement.

The company cited its "precarious financial situation," claiming negative news stories dried up its well of potential clients.

"The siege of media coverage has driven away virtually all of the Company’s customers and suppliers," the firm said.

In Wednesday's statement of insolvency, Cambridge Analytica maintained its innocence amid "unfounded accusations" of what the firm says are "widely accepted" advertising practices.

In the undercover video, Nix boasted about unsavory details about the firm's operation, including tactics Cambridge Analytica had used to compromise and potentially blackmail political candidates in other countries. Nix later explained his comments as "ludicrous hypothetical scenarios."

Cambridge Analytica responded by accusing Channel 4 of using editing and scripting to "grossly misrepresent the nature the company conducts its business."