The Forbes 30 under 30 scandals continue.

The Forbes 30 under 30 scandals continue and this time they're also YC backed. I just we've heard of so many of these scandals at this point. I'm starting to wonder how on earth all of these prominent VC firms and investment banks are being defrauded by first time founders. It's starting to feel a little bit like the pressure, tension, speed at that stage may be driving some founders to look for shortcuts as they live up to these pre-seed pitch promises. Delve is a security startup that was offering cheap and fast compliance for SOC 2, HIPAA, GDPR, etcetera. They raised $32 million Series A to build AI agents for compliance from Insight Partners. They had hundreds of customers, they went through YC, the two founders were Forbes 30 under 30. It seemed like they had all of the markings of a very successful business. But recently leaked documents show that there's almost no foundation to what they were building. Delve apparently was offering these pre-filled out SOC 2 forms to their clients before any auditor had even reviewed them. They were also using these certification mills in India that were hidden behind shell companies versus the actual US based auditors that they were advertising. And now that this is out it exposes their customers to insane legal liability. For example, if you're not GDPR compliant, 4% of your global revenue has to be given up. Delve's rebuttal to this is that they actually are not an auditing firm, but they're an automation platform that allows you to upload your certification documents and an auditor can independently access them. But even that didn't seem true because whatever they were showing as integrations came up as manual screenshots with no API connections.