Cambridge Analytica Declares Bankruptcy Amid Facebook Privacy Scandal

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The data firm says it has been "vilified" for actions it says are both legal and widely accepted as part of online advertising.

The data firm at the center of Facebook's privacy scandal is declaring bankruptcy and shutting down.

In a statement, Cambridge Analytica says it has been "vilified" for actions it says are both legal and widely accepted as part of online advertising. The firm says the media furor stripped it of its customers and suppliers, forcing it to close.

Cambridge Analytica sought information from Facebook to build psychological profiles on a large portion of the U.S. electorate. The company was able to amass the database quickly with the help of an app that appeared to be a personality test. The app collected data on tens of millions of people and their Facebook friends, even those who did not download the app themselves.