ICE Reinstates Contract with Spyware Developer Paragon

In the past year, the U.S. Immigration and Customs Enforcement (ICE) engaged in a $2 million contract with the Israeli spyware firm Paragon.

Shortly thereafter, the Biden administration began a review of the contract, issuing a “stop work order” to determine if it complied with an executive order that restricts U.S. government agencies from utilizing spyware that might violate human rights or target U.S. citizens overseas.

Almost a year later, as it appeared the contract would not be executed before its expiration, ICE officially lifted the stop work order, as per public records.

An update from August 30 on the U.S. government’s Federal Procurement Data System stated, “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 reveal this development in his newsletter.

For years, Paragon has sought to brand itself as an “ethical” and responsible spyware producer, distinguishing itself from controversial entities like Hacking Team, Intellexa, and NSO Group. On its website, Paragon asserts that it provides “ethically based tools, teams, and insights” to its clients.

With the contract with ICE’s Information Technology Division now in effect, Paragon is facing an ethical dilemma. The company must evaluate whether to continue its association with ICE, which has notably intensified mass deportations and broadened its surveillance powers since Donald Trump’s administration began.

Emily Horne, a representative for Paragon, along with executive chairman John Fleming, have yet to respond to requests for comments.

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

Paragon has already found itself in a difficult ethical situation. In January, WhatsApp revealed that nearly 90 users, including journalists and human rights activists, had been targeted by Paragon’s spyware, known as Graphite. Soon after, Italian journalist Francesco Cancellato and several local pro-immigration activists announced they were among those affected.

In response to this incident, Paragon cut ties with the Italian government, which had initiated an investigation into the issue. In June, the digital rights organization Citizen Lab confirmed that two additional journalists, one of whom was an unnamed European and Cancellato’s colleague, had also been compromised by Paragon’s spyware.

An Italian parliamentary committee ruled that the surveillance of pro-immigration activists was legal, but found no evidence indicating that Italy’s intelligence agencies, previous 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 added that the mere existence of spyware is “corrupting,” contributing to an increasing number of spyware controversies within democracies, including incidents involving Paragon’s Graphite. “Furthermore, Paragon continues to protect spyware abusers. Just look at the still-unresolved hacks concerning Italian journalists,” he remarked.