The ongoing corporate espionage saga between HR tech giants Rippling and Deel has taken yet another dramatic turn in 2026, with fresh allegations surfacing that could reshape the narrative of this Silicon Valley feud.
According to recent reports, new evidence suggests that Deel's alleged covert operations within Rippling may have been more extensive than previously thought, potentially involving multiple insiders over several years.
Background of the Rippling-Deel Conflict
This conflict first erupted in early 2025 when Rippling filed a lawsuit accusing Deel of planting a spy to steal trade secrets, a claim that Deel has repeatedly denied.
The initial lawsuit detailed how Rippling allegedly used a honeypot trap on Slack to catch the suspected mole, leading to a courtroom drama that has captivated the tech industry.
New Developments in the Scandal
The latest twist, as reported by TechCrunch on January 23, 2026, indicates that federal authorities, including the Justice Department, have now launched a criminal investigation into Deel’s actions, escalating the stakes significantly.
Sources suggest that subpoenas have been issued to key Deel executives, including CEO Alex Bouaziz, raising questions about potential criminal charges looming over the $17.3 billion-valued company.
Impact on the HR Tech Industry
The implications of this scandal are far-reaching, as trust in HR software providers—responsible for sensitive employee data—has been shaken by these allegations of corporate espionage.
Competitors and clients alike are now reevaluating their partnerships, with some industry experts warning that this could lead to stricter regulations on data security in the HR tech sector.
Historical Context of Rivalries in Tech
Corporate spying isn’t new to the tech world, with historical cases like the Uber-Waymo trade secrets dispute setting a precedent for how such conflicts can derail even the most promising startups.
However, the personal and public nature of the Rippling-Deel feud, amplified by social media and legal filings, has turned this into a spectacle that could define tech rivalries for years to come.
What Lies Ahead for Rippling and Deel
Looking forward, the outcome of the Justice Department’s probe could have severe consequences for Deel, including potential fines, leadership changes, or even a hit to its market valuation.
For Rippling, vindication in court could solidify its position as a leader in the HR tech space, though the cost of this legal battle may impact its resources and public perception.
Maria Lourdes
