Neon, an app that incentivizes users to sell personal data they would otherwise share for free, quickly gained traction after its September debut—rising to the second spot among the most downloaded free apps on Apple’s App Store within just eight days.

The platform’s model revolves around users voluntarily recording phone calls and selling that data to artificial intelligence firms for training purposes. However, concerns around privacy surfaced almost immediately. A probe by TechCrunch revealed that Neon’s servers were vulnerable, allowing unauthorized access to more than users may have intended to share. Exposed data reportedly included metadata such as phone numbers, along with call transcripts and audio recordings. Some reviewed transcripts even suggested that in-person conversations had been recorded without clear consent.

Despite the early controversy, Neon has staged a comeback. Six months post-launch, the company has raised $25 million and relaunched its platform with a stronger focus on security and transparency. Founder and CEO Alex Kiam addressed the incident candidly, acknowledging the company’s initial shortcomings.

“We had not done [penetration] testing, and TechCrunch was able to get into the database, and so we immediately shut it off. We basically went back to the drawing board,” Kiam says.

Following the breach, Neon collaborated with external cybersecurity specialists, including Unit 42, a research division owned by Palo Alto Networks, and brought on Ian Reid, former chief technology officer at Stamped, who now serves as Neon’s CTO. The team undertook a comprehensive code audit before relaunching the app in early November.

According to Kiam, the updated version of Neon quickly regained popularity, climbing to the third position on the App Store charts. He credits user trust and transparency for the app’s renewed success.

“I think the reason people came back is because they had a great experience with the app. Because we had been transparent with them during, I think they were able to give us a second chance. And we’re really grateful for that,” he says.

Even with its viral growth and financial backing, industry observers remain cautious about the broader implications of monetizing personal data, especially in a time when privacy concerns are becoming increasingly critical.