The rivalry between HR technology competitors Rippling and Deel has escalated to a new level. Former Rippling employee Keith O’Brien has admitted to spying for Deel and has provided a written statement about his actions. Rippling has made this statement public.
Rippling has filed a lawsuit against Deel, accusing the company of espionage and stealing trade secrets. While the identity of the spy was previously unknown, it has now been revealed that Keith O’Brien, who worked in Rippling’s Ireland office, was the person involved.
How Did the Espionage Happen?
In his statement, O’Brien revealed that he joined Rippling’s global payroll and compliance department in July 2023. Although he interviewed for a job at Deel in early 2024, he was not hired. Later, he reached out to Deel’s founder and CEO, Alex Bouaziz, via LinkedIn.
Soon after, O’Brien decided to start his own payroll consulting business and informed Deel about his plans. He told them he would be leaving Rippling to focus on his own venture. However, according to O’Brien, Deel’s CEO Alex Bouaziz and his father, Deel’s CFO Philippe Bouaziz, offered him a deal: stay at Rippling and spy for Deel.
According to O’Brien’s testimony, Deel promised to pay him a salary of €5,000 per month, with an initial payment of $6,000, and subsequent payments made in cryptocurrency. He then searched Rippling’s Slack, Google Drive, and other internal resources for confidential information, which he passed on to Deel.
O’Brien admitted to leaking Rippling’s customer lists, product plans, potential partnership opportunities, sales data, and other confidential documents to Deel. According to Rippling’s lawsuit, in just one day, O’Brien shared hundreds of customer, product, and sales records with Deel.
The Spy’s Exposure
Rippling’s management devised a special trap to identify the spy. They sent an official letter to Deel’s executives, claiming that Rippling employees were discussing potentially damaging information about Deel in a Slack channel called "d-defectors." However, this channel did not actually exist—the goal was to catch the spy.
O’Brien stated that Deel instructed him to search for this Slack channel. Shortly after, Deel advised him not to investigate further, suspecting it was a trap. However, by then, it was too late—Rippling had already recorded his attempts to access the nonexistent channel.
On March 14, when O’Brien arrived at work, Rippling’s legal team confronted him with a court order to inspect his devices. While he handed over his laptop, he attempted to hide his phone by going to the restroom and resetting it to factory settings. He later pretended to have flushed the phone down the toilet. However, he later admitted that he had actually smashed an old phone with an axe and disposed of it in a sewer at his mother-in-law’s house.
Panicked, O’Brien reached out to Deel’s executives. They allegedly advised him to flee to Dubai, where extradition to the U.S. would be difficult. They also suggested that he should present himself as a "whistleblower" by accusing Rippling of making illegal payments to Russia. However, realizing these claims were false, O’Brien decided to cooperate with law enforcement.
Deel’s Response
Deel has strongly denied Rippling’s allegations. In a statement to TechCrunch, the company said that Rippling is using these accusations as a distraction. A Deel spokesperson stated:
"Rippling is accused of violating sanctions against Russia and is spreading false information about Deel. Now, they are trying to shift the focus with these allegations. We reject all legal accusations and are ready to defend ourselves.”
However, Rippling’s lawyer, Alex Spiro, stated that the evidence is undeniable:
"This case clearly shows how Deel’s leadership was involved in an espionage scheme. They will have to answer for their actions."
Other HR tech companies have also reacted to the scandal. Papaya Global’s CEO, Eynat Guez, commented on the incident, saying:
"As far as we know, this isn’t an isolated case. Thanks to @parkerconrad for taking the initiative and exposing this practice."
This controversy highlights the intense competition between the two HR tech giants. The legal battle is ongoing, and how Deel defends itself against these allegations remains a subject of great interest.
