The CFTC accuses MyForexFunds of employing various strategies to hinder customers from being profitable, including imposing misleading commissions and deliberately disadvantaging successful customers to maximize losses.

Deel, an HR startup, found itself entangled in the financial dealings of proprietary trading companies. These firms often grapple with the challenge of securing financial intermediaries as they allure customers with the promise of turning them into "professional traders," utilizing company funds to trade against third-party "liquidity providers" and share in trading profits. Recent developments underscore the difficulties faced by such companies, with MyForexFunds having its assets frozen by the U.S. Commodity Futures Trading Commission on allegations of defrauding investors. The CFTC accuses MyForexFunds of employing various strategies to hinder customers from being profitable, including imposing misleading commissions and deliberately disadvantaging successful customers to maximize losses.

Out of the 21 proprietary trading firms scrutinized by The Information, 17 relied on Deel for their financial payouts, either exclusively or in conjunction with cryptocurrency. In response to the article, Deel maintained that its dealings with these firms represented less than one percent of its total revenue and emphasized its unwavering commitment to conducting rigorous Know Your Customer (KYC) checks on all platform users.

Deel has garnered recognition as the industry benchmark due to its unique ability to streamline payment processes, facilitate invoice issuance, and navigate the regulatory challenges faced by these trading companies. However, U.S. regulators are contemplating a potential inquiry into Deel's role in these financial transactions. In response, Deel clarified that its invoicing platform was its initial product, employed by these companies and others. This platform is exclusively available to businesses within approved industries and specific geographic regions, contingent on successful completion of Deel's thorough customer vetting process.

Deel underscored the necessity for contracts and invoices in the realm of service engagement and payments, setting its product apart from peer-to-peer services like Venmo. Deel emphasized that beyond offering these fundamental tools, the business relationships and services remain external to Deel and solely involve the parties specified in the contract and invoice, provided they meet Deel's stringent customer checks.

In all cases, Deel emphasized its commitment to conducting exhaustive checks on both parties involved. The platform conducts Know Your Customer (KYC) checks on all users and screens each transaction and beneficiary against international sanctions and anti-fraud databases. Businesses on the platform undergo an Enhanced Due Diligence (EDD) process to ensure compliance with permissible industries and geographic locations. This process entails collaboration with Deel's payments and anti-fraud team, alongside cutting-edge third-party technologies. Deel's approved industry and country lists are subject to periodic reviews, audits, and approval by external legal counsel and its banking and payment platform partners.