Karun Kaushik, the Indian-origin co-founder and CEO of Delve, has responded to allegations that his company misled clients 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. It’s headquarters is based 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 did not keep pace with expansion, leading to issues that are now under scrutiny. The company also issued a public statement apologising to customers for “falling short” of its own standards. At the same time, Delve pushed back strongly on the origin of the allegations. The company said the claims stem from an anonymous actor and are not from a legitimate whistleblower. According to Delve, the individual behind the posts carried out a “targeted cyberattack,” gained access to internal data under false pretences, and then used that material to launch what it described as a coordinated smear campaign. Delve said that internal company data was stolen and then used with fabricated claims and “cherry-picked” screenshots to make the company look bad. The company added that ongoing cybersecurity and forensic investigations have delayed their public response.The allegations themselves, reported by TechCrunch and based on the anonymous posts, claim that Delve misled customers about compliance with major regulatory frameworks. These include the Health Insurance Portability and Accountability Act and the General Data Protection Regulation.The claims further allege that Delve provided customers with audit-related material described as “fake evidence” and facilitated compliance certifications without completing full audit procedures. If true, such actions could expose customers to legal and financial risks for failing to meet required standards.Delve has disputed these characterisations. The company said any materials referenced were taken out of context and, in some cases, were templates meant to help customers prepare documentation rather than final audit proof.In response to the situation, Kaushik said the company has introduced changes, including a new auditor network, free re-audits and penetration tests for customers, and greater transparency in audit communications. He said Delve is reviewing its past work, strengthening internal controls, and working to rebuild trust.Despite the row, 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 customer operations.
