Daily Management Review

CEO of Infidelity Website Resigns After Third Leak


08/28/2015




CEO of Infidelity Website Resigns After Third Leak
Following a third round of leaks of user’s emails and after suppressed allegations about the affairs despite earlier denials, the chief executive of extramarital affairs website Ashley Madison has left the company on Friday.

 “Effective today, Noel Biderman, in mutual agreement with the company, is stepping down as Chief Executive Officer of Avid Life Media Inc (ALM) and is no longer with the company. Until the appointment of a new CEO, the company will be led by the existing senior management team,” said an unattributed statement on the Ashley Madison website

The website that allegedly promoted infidelity among married men and women with its tag line “Life is short. Have an affair” had details of more than 37 million accounts stolen by hackers in July this year.  

The company is now facing law suits on charges of emotional distress in the US and in Canada while the Canadian police are investigating links between the website hack and  two suicides that took place last week. 

The company statement regarding the stepping down of the CEO read: “the stepping down is in the best interest of the company and allows us to continue to provide support to our members and dedicated employees….. and we remain steadfast in our commitment to our customer base”.

Earlier this month, the details of the sensitive and confidential customer information stored in the company servers were spread far and wide across the  internet with even those who had paid $20 to delete their accounts from being exposed. This has prompted the police to tie multiple blackmail attempts and at least two suicides to the leak following the hacking.

“We are actively adjusting to the attack on our business and members’ privacy by criminals,” the company wrote, saying that it would remain in business.

Even as the police and security researcher Brian Krebs communicated much of the available information on the issue during the fiasco, the former CEO, Biderman has been notable by his silence over the course of the scandal.

New information that can turn out to be a lead for the hacking, has been posted Krebs recently: a Twitter user (or, as Krebs speculates, users) called Thadeus Zu which posted a link to the hack before anyone else and appears to have had special knowledge of the data breach before anyone else did.
Sources revealed that the emails that were released by a hacking group that called itself the Impact Team seemed to have been generated from Biderman’s work email and their release had already done damage to his personal reputation.

To assess the damage of the leak, an executive had earlier told the New York Daily News that he had never cheated on his wife, but the hacked documents suggested otherwise.

(Source: www.theguardian.com) 






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