Is It Justifiable for an ‘Ethical’ Spyware Company to Provide Technology to ICE?

Paragon, an Israeli spyware company that promotes itself as an “ethical” surveillance provider, has faced criticism following revelations that Italy misused its tools to surveil two journalists’ phones earlier this year. In a historic move, Paragon terminated its relationship with Italy, becoming the first spyware entity to publicly acknowledge a client after product misuse.

Paragon is now grappling with a new ethical dilemma: whether to allow ICE agents to access its spyware.

A one-year contract valued at $2 million, which Paragon signed with U.S. Immigration and Customs Enforcement (ICE) in September 2024, is currently under review and has yet to go into effect. Paragon has confirmed to TechCrunch that it has not yet provided HSI (Homeland Security Investigations) with its spyware tools.

Since January, the Trump administration has enabled ICE to carry out extensive immigration raids across the U.S., leading to the detention of many migrants and U.S. citizens. These actions have been supported by federal data and technology from the govtech giant, Palantir. With ICE expected to receive a significantly increased budget due to the passage of Trump’s Big Beautiful Bill Act, spyware could play a key role in the administration’s immigration enforcement strategy.

As the contract deadline approaches in two months, it remains unclear whether Paragon will ultimately supply its spyware to ICE. However, until the contract expires on September 29, the U.S. government could approve it at any time, forcing Paragon to make a decision about deploying its tools within the U.S.

Currently, the company is choosing to remain silent on this matter. When contacted by TechCrunch, Paragon did not indicate its potential actions if the contract is approved, nor did it clarify its future dealings with ICE should the contract proceed.

Paragon’s agreement with ICE has been in suspension since the paperwork was signed, as Homeland Security initiated a stop-work order to determine if the contract aligns with a Biden-era executive order. This order restricts U.S. government agencies from employing commercial spyware that could potentially be misused by foreign entities to violate human rights or target Americans abroad.

At that time, a Biden administration official informed Wired that the U.S. government had “immediately engaged” key leadership at Homeland Security, overseeing ICE, to assess if the contract was in compliance with the executive order.

Now, nine months later, Paragon’s contract with ICE remains in limbo, with no updates provided by officials in the Trump White House regarding its status.

A spokesperson for the Trump administration, Abigail Jackson, directed TechCrunch’s inquiries to Homeland Security and refrained from commenting on the administration’s position regarding the ongoing Biden-era spyware executive order, which is still in effect.

Neither the Homeland Security nor ICE spokesperson responded to TechCrunch’s requests for comment.

Spyware firms have traditionally been reticent to disclose their clients, fearing reputational damage or jeopardizing lucrative government contracts. Following WhatsApp’s announcement earlier this year that approximately 90 users, including journalists and human rights advocates, had been targeted using Paragon’s spyware, the company attempted to distance itself from these incidents. Paragon’s executive chairman, John Fleming, previously stated that its sales are limited to “a select group of global democracies — primarily the United States and its allies.”

Essentially, Paragon aims to portray itself as serving responsible government clients, and its response to the Italian controversy seems to reinforce this claim.

However, by branding itself as an ethical spyware provider, Paragon has taken on the obligation of vetting its partnerships. This approach invites scrutiny over its governmental clients and their ethical standing — whether it be the Italian government or ICE. As political landscapes shift, Paragon may need to reevaluate its collaborations.

“In light of this administration’s history of targeting human rights and civil society organizations, we hope that Paragon would reconsider the agreement,” stated Michael De Dora, U.S. advocacy manager at Access Now, a nonprofit focused on exposing spyware abuses.