Delve’s Indian-origin co-founder and CEO Karun Kaushik has responded to allegations that his company has misled customers on regulatory compliance, saying rapid growth led to internal shortcomings, while also claiming the controversy is linked to a targeted cyberattack.Delve is a compliance technology startup that helps companies assess and manage their security, privacy, and regulatory compliance. Its headquarters is located in San Francisco, California.In a video statement, Karun Kaushik said the company “grew too fast”, which created gaps in processes and oversight. He acknowledged that systems could not keep up with the expansion, leading to issues that are now under investigation. The company also issued a public statement apologizing to customers for “falling short” in its own standards.Additionally, Delve strongly disputed the substance of the allegations. The company said that these claims are from an anonymous actor and not from a legitimate whistleblower. According to Delvey, the person behind the post conducted a “targeted cyberattack”, gained access to internal data under false pretenses, and then used that content to launch what was described as a coordinated smear campaign.Delvey said the company’s internal data was stolen and then used with fabricated claims and “cherry-picked” screenshots to make the company look bad. The company said their public response has been delayed due to ongoing cybersecurity and forensic investigations.The allegations, reported by TechCrunch and based on anonymous posts, claim that Delve misled customers about its compliance with key regulatory frameworks. These include the Health Insurance Portability and Accountability Act and the General Data Protection Regulation.The claims further allege that Delve provided audit-related materials described as “bogus evidence” to clients and facilitated compliance certificates without completing full audit processes. If true, such actions could expose customers to legal and financial risks by failing to meet required standards.Delve has disputed these characterizations. The company said any materials referenced were taken out of context and, in some cases, were templates to help clients prepare documents rather than final audit evidence.In response to the situation, Kaushik said the company has introduced changes, including a new auditor network, free re-audits for clients and greater transparency in penetration testing and audit communications. He said Delve is reviewing its past work, strengthening internal controls and working to rebuild trust.Despite the controversy, Kaushik said the company remains committed to its compliance business and is “not going anywhere.”Kaushik studied artificial intelligence at MIT, previously founded a health tech venture, and led scientific research before launching Delve in late 2023. He oversees product, audit delivery and client operations.
