ICE Resumes Contract with Spyware Developer Paragon

Last year, the U.S. Immigration and Customs Enforcement (ICE) entered into a $2 million contract with the Israeli spyware company Paragon.

Soon after, the Biden administration initiated a review of the contract, issuing a “stop work order” to assess whether it adhered to an executive order that limits U.S. government agencies from using spyware that may infringe on human rights or target U.S. citizens abroad.

Nearly a year later, when it seemed like the contract would expire without being activated, 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 indicated, “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 development in his newsletter.

For years, Paragon has aimed to present itself as an “ethical” and responsible spyware manufacturer, contrasting its image with that of controversial entities like Hacking Team, Intellexa, and NSO Group. On its website, Paragon claims to offer “ethically based tools, teams, and insights” to its customers.

Now that the contract with ICE’s Information Technology Division is active, Paragon faces an ethical crossroads. The company must decide whether to maintain its relationship with ICE, which has significantly increased mass deportations and expanded its surveillance authority since Donald Trump took office.

Emily Horne, a spokesperson for Paragon, and executive chairman John Fleming have not responded to requests for comment.

In February, in an effort to demonstrate good faith, Fleming informed TechCrunch that the company sells exclusively to the U.S. government and other unnamed allied countries.

Paragon has already encountered a challenging ethical situation. In January, WhatsApp disclosed that around 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 activists revealed they were among those affected.

Following this incident, Paragon severed ties with the Italian government, which initiated an inquiry into the matter. In June, the digital rights research group Citizen Lab confirmed that two additional journalists, one unnamed European and Cancellato’s colleague, had been compromised by Paragon’s spyware.

An Italian parliamentary committee determined that the surveillance against pro-immigration activists was legal, but found no evidence 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 investigating spyware abuse, told TechCrunch, “These tools are designed for dictatorships, not democracies founded on liberty and individual rights.”

He added that even the presence of spyware is “corrupting,” leading to a rising number of spyware scandals within democracies, including those involving Paragon’s Graphite. “Moreover, Paragon continues to protect spyware abusers. Just look at the still-unexplained hacks involving Italian journalists,” he said.