Deel Slapped With Federal RICO Lawsuit Alleging Money Laundering

The human resources outsourcing company Deel has been hit with a federal RICO lawsuit. The lawsuit accuses the Silicon Valley company of operating as part of an international scheme to evade U.S. sanctions against Russia and flout money laundering regulations.

The allegations in the complaint were brought forward by Melanie Damian, a court-appointed receiver tasked with recovering damages from a 2023 Securities & Exchange Commission (SEC) enforcement case.

The complaint [Damian v. Deel Inc., et al., Case 1:25-cv-20017] which was in the U.S. District Court for the Southern District of Florida, alleges that Deel facilitated unauthorized money transmissions through a Florida subsidiary, violating federal anti-money laundering (AML) and know-your-customer (KYC) requirements under the Bank Secrecy Act (BSA).

Mrs. Damian also alleges that Deel partnered with a sanctioned Russian bank and operated unlicensed money transmission businesses in Russia, which is direct violation of sanctions imposed by the Office of Foreign Assets Control (OFAC).

The complaint highlights Deel’s ties to Arival Bank, a Puerto Rican “crypto bank” co-founded by Russian nationals and previously flagged by Puerto Rican regulators for posing a risk to public safety.

The bank’s former Russian-trained compliance chief now serves as Deel’s global head of compliance. Damian’s filing also points to Deel’s acquisition of Atlantic Money, a U.K.-based money transmitter, whose leadership reportedly includes former executives from the sanctioned T-Bank.

Because the complaint alleges that Deel’s Florida operations lacked proper money transmitter licensing, Damian is demanding that Deel be made to pay $2.2 million in recovery,

The company has already been cited for licensing violations in Minnesota and Florida, according to the filing.

The lawsuit, which appears to be supported by evidence including documents and images from English and Russian sources, alleges Deel played a key role in aiding Russian efforts to evade sanctions and launder money, operating as a “greedy partner” in a global network of illicit financial activities.

Deel, who appears to be ready to counter the complaint,  responded to the RICO lawsuit, telling The Floridian in a written statement that they have "never been named or accused by the SEC" of "any wrongdoing."

“Surge Trading has been subject to SEC actions and investigations - Deel has never been named or accused by the SEC or any other agency of any wrongdoing in any way related to Surge Trading," read the statement. “We operate in the U.S. through licensed and regulated partners and leading industry payment service providers, adhering to both state and federal laws - a standard and compliant industry practice.”