Deel Faces Dual Lawsuits Alleging Money Laundering and Corporate Espionage

Payroll and HR tech unicorn Deel is currently embroiled in significant legal challenges, including a federal lawsuit alleging money laundering and sanctions violations, alongside a separate corporate espionage claim from competitor Rippling. These developments have drawn sharp criticism on social media, with one user, Kumar🇺🇸, stating, "Wouldn't be surprised if the Deel founder is laundering money through 250+ LLC's given that it looks like Dad is not afraid to try to manipulate the gov't into looking the other way by spreading FUD about a competitor. This shit looks like FTX 4.0."

In January 2025, a federal RICO lawsuit was filed in Florida, accusing Deel of facilitating money laundering and violating U.S. sanctions against Russia. The complaint, brought by a court-appointed receiver, alleges Deel's platform processed payments for a Ponzi scheme and enabled transactions with sanctioned Russian entities. Deel has vehemently denied these accusations, labeling them "baseless" and suggesting the lawsuit is a coordinated effort by an investor in a rival HR software firm.

Adding to its legal woes, Deel was hit with another lawsuit in March 2025 by competitor Rippling, alleging corporate espionage. Rippling claims Deel orchestrated a scheme to bribe one of its employees to steal confidential business information, including sales pipelines and customer data. Reports indicate that Deel CEO Alex Bouaziz and his father, Philippe Bouaziz (Deel's CFO), have relocated to Dubai, complicating efforts to serve legal papers in the Rippling case.

Deel, valued at $12 billion with an annual revenue run rate exceeding $800 million, has been a rapidly growing player in the global remote workforce management sector. Despite its financial milestones and reported aspirations for an IPO, the company faces intense scrutiny over its compliance protocols and competitive practices. The severe comparison to "FTX 4.0" by the social media user highlights the gravity of the unverified claims circulating amidst these formal legal proceedings.