Political consultancy Cambridge Analytica, the firm at the centre of the Facebook data-sharing scandal, is shutting down, it says.
The firm was accused of improperly using data on behalf of political clients.
According to Facebook, data about up to 87 million of its members was harvested by an app and then passed onto the political consultancy.
The social network declined to comment on the latest development.
Clarence Mitchell, a spokesman for Cambridge Analytica, referred the BBC to a
statement on the firm's website.
"Over the past several months, Cambridge Analytica has been the subject of numerous unfounded accusations and, despite the company's efforts to correct the record, has been vilified for activities that are not only legal, but also widely accepted as a standard component of online advertising in both the political and commercial arenas," it said.
"Despite Cambridge Analytica's unwavering confidence that its employees have acted ethically and lawfully... the siege of media coverage has driven away virtually all of the company's customers and suppliers.
"As a result, it has been determined that it is no longer viable to continue operating the business."
The statement added that SCL Elections was also commencing insolvency proceedings.
