Company in shambles, marriages ruined. My work here is done, says Ashley Madison CEO

Noel Biderman has quit as chief exec of Avid Life Media, the parent of adultery website Ashley Madison. If you can't think why, or don't know what Ashley Madison is by now, then you must have been living under a rock for the past month – and we'd be grateful if you could let us join you. After hackers ransacked the Ashley …

[Your alien overlord - fear me]

If only more CEOs fell on their sword so quickly (or gov't ministers).

[VinceH]

What would be the point of CEOs falling on government ministers?

[Anonymous Coward]

So long as the CEO falls head first from a sufficient height it solves two noxious problems simultaneously.

[Anonymous Coward]

CEO falls head

while in this reality, they glide gracefully into a safe and plushy landing site. Off-side and off-line, because.

[Anonymous Coward]

Re: CEO falls head

in the guy's defence he did create the site and build it up from nothing. That's heaps more than the average CEO / MBA / Snr Manager is capable of.

[Simon Westerby 1]

>> What would be the point of CEOs falling on government ministers?

Is that the New website he's going to start ;)

[Anonymous Coward]

Well.....

If 'sword' is a euphemism then I'd say that happens more times than I care to count.

[Nonymous Crowd Nerd]

Maybe it would muffle the sound of all those weasel words they trot out to avoid every serious question that's ever addressed to them!

[Anonymous Coward]

It might remove both ..... if we were lucky ;)

[Michael Wojcik]

What would be the point of CEOs falling on government ministers?

That depends on the impact velocity.

Under suitable conditions, you'd be taking out two birds with ... well, with one of the birds. You'd have optimized the stones out entirely.

[PrivateCitizen]

Blunt Swords

If only more CEOs fell on their sword so quickly (or gov't ministers).

The problem is that "falling on his sword" here actually means he will be able to avoid the massive financial pain from the inevitable law suits and other forms of legal action.

Basically he has been able to reap great profits, avoid paying for the security he promised users, scammed gullible men with fake female profiles and jumped ship in time to make it on the life raft.

While I hate the man, I do have to say he has good timing.

[Anonymous Coward]

Re: Blunt Swords

The problem is that "falling on his sword" here actually means he will be able to avoid the massive financial pain from the inevitable law suits and other forms of legal action.

I don't believe that quitting after the fact absolves any company director from legal issues related to conduct whilst "in office". Laws regarding fiduciary duty, amongst other things.

[Doctor Syntax]

"proprietary member and business information"

No, the member stuff was their personal data, not your proprietary information. You might not think it but there is a difference.

[Mpeler]

Proprietary member?

Sounds like they were interested in putting their members in places they didn't belong.

Proprietary to their spouse (SO, etc.)...

[Antonymous Coward]

A big rat flings itself from the s(t)inking ship

Any chance of a mugshot of the good man himself for the "hero [sic] pic" in these AM/ALM articles Reg?

[Mike Echo]

Re: A big rat flings itself from the s(t)inking ship

Here you go, a story in Oz news featuring a pic taken in happier times by the look of it.

http://www.abc.net.au/news/2015-08-29/ashley-madison-boss-steps-down-after-data-breach/6734282

[Antonymous Coward]

Re: A big rat flings itself from the s(t)inking ship

Superbly smug & sneery snap. Why can't our Reg manage something like that?

Not so sure about the rigorousness of the Aussie's copy though. Spotted a couple of glaring factual errors in that caption alone:

Founded in 2002, Ashley Madison, the world's biggest online dating fraud website for married men and women, has had over 20 million users victims in 30 regions all over the world. (Reuters: Bobby Yip)

[diodesign]

Re: Re: A big rat flings itself from the s(t)inking ship

"Why can't our Reg manage something like that?"

Because it was Friday afternoon, my brain was fried, and I'd have to hunt for an image we could clear copyright on. I've added a pic of darling Noel to the story.

C.

[Ole Juul]

no longer with the company

The affair is over.

[Mark 85]

Re: no longer with the company

Over? Probably not.. the guy will end up as the lightning rod during the lawsuits, etc. I guess it also depends on how much stock he has and what his "severance" was. Pity it's not his head on a platter but...

[Ole Juul]

Re: no longer with the company

"the guy will end up as the lightning rod during the lawsuits, "

Well after that he will be no more - or at least tired and shagged out after a long squawk.

[Grikath]

Re: no longer with the company

"the guy will end up as the lightning rod during the lawsuits, "

Only marginally.. The thing about the corporate structure is Limited Liability... Unless there is some damning evidence indicating he was *directly* culpable and responsible for the data breach, and resultant fallout, he comes away scot free.

The severance package is the key here. He is parachuting out: AM's stock is next to worthless at the moment, and the parent company will take a hit, if it's not being sued into insolvency. So he does the formal Mea Culpa, waves goodbye to "his" company, and cashes in while the company still has cash.

I may be too cynical, but in a couple of weeks I suspect we'll see a second round of exits among the top there, citing "taking responsibility" or "advancing career opportunities" while the corpse is left to rot.

[Ian 55]

Re: no longer with the company

Not having read the emails, is it clear he knew the site was, as demonstrated by the database, basically fraudulent?

If so, he could have his day in court after all.

[Anonymous Coward]

Re: no longer with the company

and he can heartily claim: fuck you, Jacks, I'm allright.

[CrosscutSaw]

Oh dear

He was sitting back collecting money from people.. now he actually has to put some work in, so he's bailing. That's what you want in a leader? Good riddance. He'll stay low for a bit until people forget, then he'll lead another company into the ground. Business school 101!

[Voland's right hand]

Re: Oh dear

He is onto a winner.

That is a lovely business model - in all other areas of life this would have amounted as fraud. A dating site with worse than 1:1000 target:interest active user ratio? You are more likely to get more lucky in an orthodox convent somewhere in the middle of Eastern Siberia.

However _NONE_ of the users would ever sue for fraud or file the relevant paperwork with consumer protection watchdogs because of the stigma that their name will be attached to an "affair site".

So do not worry about him, he will re-emerge again. People like that do not sink easily.

[John Brown (no body)]

Re: Oh dear

You mean like this guy?

[Anonymous Coward]

Hello Chief Rat, meet Sinking Ship

A**hole wont die penniless, give it a year or two and watch him re-emerge as CEO of yet another chancer oufit.

To use an old fashioned acronym TANJ

[jonnycando]

Sign of the times maybe

Well, I certainly don't approve of what the site was about, but they are a poster child for the carelessness and dishonesty web based companies approach security with. It could and well already has been any kind of ecommerce agent.... After every attack of this comes to light, one is forced to wonder.....weren't they reading the news? Did they really think..."it can't happen to us" ? Oh, but I do get it...it's just a business, it's there to make money...nothing more.

[Version 1.0]

Re: Sign of the times maybe

Exactly - in many ways AM are a poster child for so much of what passes for the new web economy.

1. Have a brilliant idea (OK, a mediocre idea but we'll call it brilliant in the media releases).

2. Build a web site and seed it with ghost users.

3. Raise enough capital to advertise.

4. Investors throw money at you.

[a_yank_lurker]

Criminal charges?

Given some of the antics of AM, i wonder if criminal charges are not in the works for the mismanagement team.

[hatti]

our unique systems

= sql injectable forms

[Fruit and Nutcase]

Compare notes

Now that he has some spare time, he could hookup with Ellen Pao. May be they could start a business or something. Bring their IT & people management skills...

[Anonymous Coward]

Methinks El Reg doth protest too much

If you can't think why, or don't know what Ashley Madison is by now, then you must have been living under a rock for the past month – and we'd be grateful if you could let us join you.

Nobody's forcing you to write story after story about this fiasco, which doesn't really have that much of an IT angle anyway beyond the breach itself. It does make for fine salacious clickbait, of course, and drives the page views up, which is doubtless the kind of calculation the Daily Mails of this world are using...

[Day]

Re: Methinks El Reg doth protest too much

If you think this "really doesn't have that much of an IT angle", you're deluded.

1. Security issues;

2. Internet "dating";

3. Fraud;

4. Crowdsourcing fake female profiles;

5. Failing to delete the profiles after payment;

This was a business that could only have existed on the internet and it has gone bust in the most public way. It has made headlines in the mainstream press worldwide. The founders of this business appear to be "ideas guys". In the midst of a perceived change in Internet innovation, (from people who are good coders or good designers who are trying to create new/better products ==> people whose business plan is to sell ideas and then rush to IPO), this is a big story. The headline is not misleading, so you didn't have to read it, much less comment on it.

[Anonymous Coward]

Re: Methinks El Reg doth protest too much

1. I agree. That's why I mentioned the initial beach.

2, 3, 5. These all existed, or were perfectly feasible to do, without IT, let alone the internet.

4. You got a source for the "crowdsourcing"?

As for me having the temerity to comment on this, you may recall that it wasn't me who said that they wished they didn't have to hear any more about this while simultaneously writing about it, so I'll feel free to read and comment without asking your permission, if that's OK.

[Velv]

Conspiracy Theory...

Avid Media was originally formulated as a concept by a secret group of religious crusaders who had an idea to gather the details of cheaters so they could later release the damming material on the world and thus promote the fidelity of their religion while otherwise demonising the hedonistic heathens and exposing them to suicide, murder and social breakdown.

[Anonymous Coward]

@Velv Re: Conspiracy Theory...

"Avid Media was originally formulated as a concept by a secret group of feminist crusaders who had an idea to gather the details of cheaters so they could later release the damming material on the world and thus promote the sanctity of marriage by demonizing unfaithful men and exposing them to public humiliation, suicide, and nervous breakdown."

FFY.

[russell 6]

Another conspiracy theory

What if the whole thing was set up as a honey trap from the very start. Lots of guys lured to sign up from all levels of society and working in all sorts of interesting organizations around the globe.

What if the hack was part of the plan and the names released were the small fry, the really interesting catches, who might have access to god knows what or who know god knows what were left off the list, for now. They can then be blackmailed for info etc and if they don't comply their details will also be released. Just a conspiracy theory but I had fun making it up.

[Version 1.0]

Re: Another conspiracy theory

Another NSA website perhaps ... like Facebook? Why bother trying to collect information about people when they are willing to give it to you for free?

[russell 6]

Re: Another conspiracy theory

It's just a conspiracy theory I made up for fun. You aren't supposed to take it seriously

[Fruit and Nutcase]

Re: Another conspiracy theory

"What if the whole thing was set up as a honey trap from the very start. Lots of guys lured to sign up from all levels of society and working in all sorts of interesting organizations around the globe."

Just like El Reg

[russell 6]

Re: Another conspiracy theory

Yes, guilty of having a closer relationship with hardware or dare I say it software, than with their partners

[Anonymous Coward]

Re: Another conspiracy theory

I have a better one, as in The Best Is Yet To Come, a la Snowden.

By NOT releasing the juiciest details on the Biggest Fish (cue photos, personal details), someone has pwned some serious blackmail assets but just hasn't used them yet. The first release was simple the just a flexing of some serious muscle on order to scare certain *important* and now vulnerable folk.

Of course the Illuminati members, FreeMasons, Federal Reserve Board or whoever it is that runs the world won't let that happen. They will just pay or bend to whatever demands made by said blackmailer (or snuff out his lights).

I mean, that is the way I would write the story. I am claiming all Film rights and will call it the Scarlet Letter Code.

[J. R. Hartley]

The title is no longer required.

He's pining for the fjords

[JaitcH]

Cleaning Up Eglinton & Yonge, Toronto

Avid Life Media is in one of those high-priced high-rise office buildings in this mid-town area of Toronto at 2300 Yonge Street aka Yonge-Eglinton Centre.

A friend who works in the building says other tenant's employees have been increasingly harassed, even to the point where reporters, etc. are lurking in the underworld which connects many of the buildings to the subways and garages.

People have been getting accosted in the public mall area, on the elevators (lifts), etc.

Now that Biderman's digital life has been spread all over the InterNet and that he has, allegedly, separated himself from the private company, people are hoping things will cool down and they won't have to hide their faces to avoid being seen on local TV news!

As for Biderman, couldn't have happened to a nicer fella'. Interesting that he doesn't have children in his Will, only 'issue'. Wonder how many 'issues' he has?

[Teiwaz]

Re: Cleaning Up Eglinton & Yonge, Toronto

"As for Biderman, couldn't have happened to a nicer fella'. Interesting that he doesn't have children in his Will, only 'issue'. Wonder how many 'issues' he has?"

Would that be 'Tissue(s)' more like.

Can you (or are you expected) to leave something in your will for a balled up crusty?

[Anonymous Coward]

hmmm

I dont think the CEO is going to walk away and be happy. Its likely his personal life will fall apart too, after more than 10 of his own affairs have come out from the emails. So many dodgy and illegal business practices have been uncovered too. This is going to go on for a long time, even after the media forgets.

worth keeping an eye on, if your interested in the fallout: https://twitter dot com/amlolzz

[Anonymous Coward]

Sponsored: Why should unified communications be part of your strategy?

Whatever generates the sponsored links that lurk at the bottom of El Reg articles has now developed a rather good sense of humour. You should let it write an article or two.

One day out of curiosity, I will follow one of these links, but I suspect the content won't be nearly as funny as the titles.

[chugs]

I just love the tenacity of the company itself.

Seriously why would anyone sign up to it? Are they really hoping people are that stupid?

"hmmm i feel like cheating. You know what i think i'll sign up to that company that cheating company that got hacked and lost everyones details to the internet and that probably doesn't have any women on it either".

I think the moment the material got released (they called the hackers bluff didn't they) they should have imediately filed for bankruptcy citing potential legal claims.

They idiots are going to be sued out of existence.

Hell if anyone particularly rich and powerful stupidly signed up for this I would expect them to get bounty hunters onto them.

[Pascal Monett]

I don't think that someone who is rich and powerful has any need of a dating site.

All he needs to do is throw a pool party, then he can pick and choose among the candidates - because there will be candidates.

[Winkypop]

I can't see what the big deal is

People signed up to get f*cked and they all have been, well and truly.

Mission accomplished.

[Jock in a Frock]

I hope the Feds are seizing and monitoring the assets of ALM and all the top execs. I have a horrible feeling they will be busy obfuscating their finances in a way to avoid liability once the lawsuits start to land.

A horrible company, started by an odious individual, aiming to fleece the gullible, with no concern for the emotional trauma left in its wake.