Collapsing "connected toy" company did nothing while hackers stole millions of voice recordings of kids and parents

Spiral Toys -- a division of Mready, a Romanian electronics company that lost more than 99% of its market-cap in 2015 -- makes a line of toys called "Cloudpets," that use an app to allow parents and children to exchange voice-messages with one another. They exposed a database of millions of these messages, along with sensitive private information about children and parents, for years, without even the most basic password protections -- and as the company imploded, they ignored both security researchers and blackmailers who repeatedly contacted them to let them know that all this data was being stolen. Read the rest