UPDATE 18:20 - Alexander Nix, former chief executive of Cambridge Analytica, has denied allegations that he withdrew more than $8m from the data company shortly before it collapsed, as reported in the Financial Times.

Giving evidence to the UK parliamentary select committee for digital, culture, media and sport, on June 6, 2018, he said: "the allegation made in that article is false, the facts in that article are not correct." He added: "I have personally invested millions of dollars to meet staff salaries, staff bonuses and staff redundancies."

The former chief executive of scandal-hit Cambridge Analytica allegedly siphoned off more than $8m from the data firm shortly before it went bust.

The Financial Times reported that Alexander Nix banked the money for "unbooked services" after the first media reports in March revealed the company had harvested 87m Facebook accounts to target voters during Donald Trump's successful 2016 U.S presidential campaign.

As a result, investors who had pumped money into the British company are now demanding Mr Nix repay the cash, said the FT, citing several sources. They added that they would also like former Cambridge Analytica employees to receive redundancy pay after they were dismissed without severance pay.

Cambridge Analytica and a sister company, SCL Group, had raised $19m from international investors to launch Emerdata, a successor company. Emerdata's board included Rebekah and Jennifer Mercer, the daughters of right-wing hedge fund tycoon and prominent Trump donor, Robert Mercer.

But the money drained away quickly, according to insiders the FT spoke to, spent on outstanding bills to suppliers and advertisers, and because of Mr Nix's withdrawal. Bankruptcy filings in New York show that Cambridge Analytica received an $8.8 million loan from Emerdata before it entered administration, the FT revealed.

Eton-educated Mr Nix , 43, did not respond to numerous requests for comment from the FT but according to some people involved in the dispute he has indicated that he intends to repay part on the money.

Meanwhile, Nix has agreed to appear before Parliament's media committee after previously refusing to testify due to law enforcement investigations into the firm.

Earlier this week, U.K. Information Commissioner Elizabeth Denham told the European Parliament she was "deeply concerned" about the impact on democracy of the misuse of social media users' personal information. She said legal systems had failed to keep up with the rapid development of the internet.