ICE Resumes Contract with Spyware Company Paragon

Over the past year, the U.S. Immigration and Customs Enforcement (ICE) entered into a $2 million agreement with the Israeli surveillance firm Paragon.

Shortly after, the Biden administration initiated a review of the contract, issuing a “stop work order” to assess its alignment with an executive order that limits U.S. government agencies from employing spyware that could infringe on human rights or target Americans overseas.

Nearly a year later, as it became evident that the contract would not be fulfilled before its expiry, ICE officially lifted the stop work order, according to public records.

An update from August 30 on the U.S. government’s Federal Procurement Data System noted, “This contract is for a fully configured proprietary solution including license, hardware, warranty, maintenance, and training. This modification is to lift the stop work order.”

Independent journalist Jack Poulson was the first to disclose this news in his newsletter.

For years, Paragon has attempted to position itself as an “ethical” and responsible spyware developer, setting itself apart from controversial firms like Hacking Team, Intellexa, and NSO Group. On its website, Paragon claims to provide “ethically based tools, teams, and insights” to its clients.

With the contract with ICE’s Information Technology Division now active, Paragon faces a significant ethical challenge. The company must decide whether to maintain its partnership with ICE, particularly as the agency has increased mass deportations and expanded its surveillance capabilities since the Donald Trump administration.

Emily Horne, a representative for Paragon, and executive chairman John Fleming have not yet responded to inquiries for comments.

In February, to demonstrate good faith, Fleming informed TechCrunch that the company only sells to the U.S. government and other unspecified allied nations.

Paragon has already encountered a troubling ethical situation. In January, WhatsApp revealed that nearly 90 users, including journalists and human rights advocates, had been targeted by Paragon’s spyware, known as Graphite. Shortly thereafter, Italian journalist Francesco Cancellato and several local pro-immigration advocates disclosed that they were among the affected individuals.

In response to this incident, Paragon severed ties with the Italian government, which had begun an investigation into the matter. In June, the digital rights organization Citizen Lab confirmed that two more journalists, including an unnamed European and Cancellato’s colleague, had also been compromised by Paragon’s spyware.

An Italian parliamentary committee determined that the surveillance of pro-immigration activists was legal, but found no evidence to suggest that Italy’s intelligence agencies, former clients of Paragon, targeted Cancellato.

John Scott-Railton, a senior researcher at Citizen Lab with over a decade of experience in spyware investigations, told TechCrunch, “These tools are designed for dictatorships, not democracies founded on liberty and individual rights.”

He further stated that the very existence of spyware is “corrupting,” leading to a growing number of spyware-related controversies in democracies, including incidents involving Paragon’s Graphite. “Moreover, Paragon continues to protect spyware abusers. Just look at the still-unresolved hacks involving Italian journalists,” he added.