The company announced that bankruptcy proceedings will begin in the US, as well as insolvency proceedings in the U.K, where the firm has an office and where its parent company The SCL Group is based.
Speaking to the Telegraph recently, Twitter admitted to selling user data to Aleksandr Kogan.
After an internal review, Twitter told Bloomberg that it had granted GSR access to large-scale public data covering months of posts for a full day in 2015. "GSR did have one-time API access to a random sample of public Tweets for a five-month period from December 2014 to April 2015".
Zuckerberg, 33, had said that he accepted blame for the data leak, which has angered users, advertisers and lawmakers, while also saying he was still the right person to head the company he founded.
"The siege of media coverage has driven away virtually all of the company's customers and suppliers", Cambridge Analytica said in a statement.
Lawmakers in United Kingdom have also warned that Cambridge Analytica should not escape scrutiny by shutting down. "Cambridge Analytica may remain an organic user on our platform, in accordance with the Twitter rules".
In the wake of the privacy breach controversy involving Facebook and political consulting firm Cambridge Analytica, Mozilla has suspended advertising on the social network, citing data privacy concerns.
Cambridge Analytica is a part of SCL Group, a government and military contractor that says it works on everything from food security research to counter-narcotics to political campaigns.
The company is now going into administration, effectively the British equivalent to bankruptcy.
The social media giant said it bans companies from "inferring or deriving sensitive information like race or political affiliation, or attempts to match a user's Twitter information with other personal identifiers" and that it had staff in place to police this "rigorously". Twitter's data on users is far less personal compared to Facebook data.
Cambridge Analytica, however, maintained its innocence. "While we believe there is still more to learn, we found that its current default settings leave access open to a lot of data - particularly with respect to settings for third-party apps". The company spent weeks explaining, apologizing and adding more privacy features to the service and faced both a #deleteFacebook campaign and lengthy congressional hearings for Chief Executive Officer Mark Zuckerberg.