This development follows allegations that compliance certifications for hundreds of Delve’s clients were fabricated.
Delve, meanwhile, has denied the allegations, stating that recent claims stem from a targeted cyberattack and misrepresentation of internal data.
In a detailed blog post published on Friday, the company said it does not act as an auditor and has never signed audit reports.
“We have never signed an audit report,” the company said, adding that independent auditors are responsible for reviewing evidence and issuing final certifications.
The controversy surrounding Delve escalated rapidly over two weeks. Here’s how the events unfolded:
March 19, 2026: An investigation published on Substack by DeepDelver alleges that a leaked spreadsheet contains hundreds of draft compliance reports from Delve that may not have undergone proper independent auditing.
March 21, 2026: The allegations gained traction online, with claims that Delve fabricated compliance certifications for hundreds of clients, raising concerns among customers and the broader startup ecosystem.
March 22, 2026: Delve issued an initial statement. Cofounder Karun Kaushik denied the allegations, calling them “falsified” and “AI-generated.” He maintained that no sensitive customer data was exposed, even as reports cited in the allegations were said to include private signatures and architectural diagrams.
March 29, 2026: Kaushik published a detailed LinkedIn post outlining Delve’s operating model. He reiterated that the company functions as a software platform connecting customers with independent auditors, not as an audit firm itself.
“We have never signed an audit report,” the company states, comparing its role to tax preparation software rather than accounting firms.
April 3, 2026: Delve said its internal investigation found evidence of a breach involving a malicious actor posing as a customer.
April 4, 2026: Delve confirmed it has parted ways with backer Y Combinator, which has removed the startup’s profile from its directory. Kaushik issued a public apology, acknowledging operational gaps during a period of rapid growth. The company said it “pushed hard on automation.”
“We take these allegations seriously and have made changes: a new auditor network, free re-audits and pentests for all customers, enhanced transparency in audit communications,” he said.
Cofounder and COO Selin Kocalar confirmed the startup will continue its operations.
“Delve was built to modernise compliance. We are not going anywhere and are committed to building what’s next.”
“Our entire team has been working day and night for the past two years, and it’s been no different the past two weeks as we work around the clock to make improvements for our customers,” she added.
It will also offer complimentary re-audits and penetration tests to all customers, effective April 2026, the company said.
“We started Delve because compliance was slow, expensive, and manual,” the company said. “We are committed to improving how it’s done.”
Also Read: Who are Delve founders Karun Kaushik and Selin Kocalar?