U.S. ICE Contracts Controversial Security Company, Paragon

ICE integrates Paragon security into domestic operations.

Adam Carter

The U.S. Immigration and Customs Enforcement (ICE) has reignited controversy after moving forward with a contract to acquire advanced spyware from Paragon Solutions, an Israeli-founded company now owned by a U.S. firm. This decision clears the way for ICE to deploy one of the most powerful cyber tools in the world, raising alarm among privacy advocates and civil rights organizations.

What’s Happening & Why This Matters

(Credit: DHS)

The contract, worth $2 million, was initially signed during the Biden administration in late 2024 but was put on hold following a new executive order restricting the federal use of commercial spyware linked to surveillance and human rights abuses. According to public procurement documents, ICE has now officially lifted that pause, making the agreement active again .

The spyware at the heart of the deal is called Graphite, a tool capable of infiltrating any smartphone. Once installed, it gives operators complete access to a target device — tracking location, reading private messages, viewing photos, and even bypassing encryption in secure apps like WhatsApp and Signal. Graphite can also turn a phone into a remote listening device by hijacking its microphone.

Critics warn that placing this level of invasive surveillance technology in the hands of ICE — an agency frequently accused of overreach and due process violations — poses a severe threat to civil liberties. John Scott-Railton, a senior researcher at the Citizen Lab at the University of Toronto, expressed grave concern:

“Invasive, secret hacking power is corrupting. That’s why there’s a growing pile of spyware scandals in democracies, including with Paragon’s Graphite.”

A Global Spyware Battle

(credit: Paragon)

Paragon Solutions has tried to distance itself from other infamous spyware firms, such as NSO Group, which has been blacklisted by the U.S. for allegedly helping authoritarian governments target dissidents and journalists. Paragon insists it only works with democratic governments and claims to cut off clients who misuse its technology. However, the company refuses to disclose its customer list or monitor how its tools are deployed.

The spyware industry has long walked a fine line between national security and privacy violations. While companies like Paragon argue their tools are designed to prevent crimes and terrorist attacks, past incidents show they’ve been used against innocent individuals. In one case, WhatsApp traced a Paragon-related cyberattack involving malicious PDFs targeting at least 90 users across multiple countries. Earlier this year, Citizen Lab discovered Graphite infections on iPhones belonging to two European journalists.

The Biden administration’s executive order was intended to establish strict limits on commercial spyware use by federal agencies. It explicitly bans operational deployment of spyware that could pose counterintelligence risks or threaten civil liberties. Despite this, ICE moved ahead with Paragon’s software after a quiet review. There are questions about internal oversight and accountability.

Nadine Farid Johnson, policy director at the Knight First Amendment Institute, voiced strong concerns:

“Spyware like Paragon’s Graphite poses a profound threat to free speech and privacy. The quiet lifting of the stop work order raises troubling prospects about parts of the executive branch acting without adherence to the government’s own vetting requirements.”

ICE has not explained how it plans to use the spyware or provided details on operational safeguards. Transparency advocates are calling for congressional intervention to define the legal boundaries of such powerful surveillance technologies.

Implications for National Security

Beyond privacy issues, experts warn of potential counterintelligence risks. Since Paragon sells technology to multiple governments, foreign agencies could gain insight into U.S. surveillance tactics, undermining national security.

Scott-Railton explained: “As long as the same mercenary spyware tech is going to multiple governments, there is a baked-in counterintelligence risk.”

Impact

The contract comes amid discussions regarding the role of surveillance technology in democratic societies. Over the last decade, spyware has been at the center of numerous scandals, including abuses by authoritarian regimes and unlawful domestic surveillance. By allowing ICE to access Graphite, the U.S. government enters territory that could redefine privacy protections for millions of people.

TF Summary: What’s Next

The reactivation of Paragon Solution’s ICE contract places one of the most advanced hacking tools into domestic law enforcement’s hands. Proponents argue it strengthens national security and crime prevention. Critics see a looming threat to privacy and democratic freedoms.

As calls for oversight gain steam, Congress faces mounting pressure to set clear rules for government use of spyware before its misuse triggers irreversible damage. Whether ICE’s deployment of Graphite is transparent and accountable remains an open — and deeply contested — question.

— Text-to-Speech (TTS) provided by gspeech

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By Adam Carter “TF Enthusiast”
Background:
Adam Carter is a staff writer for TechFyle's TF Sources. He's crafted as a tech enthusiast with a background in engineering and journalism, blending technical know-how with a flair for communication. Adam holds a degree in Electrical Engineering and has worked in various tech startups, giving him first-hand experience with the latest gadgets and technologies. Transitioning into tech journalism, he developed a knack for breaking down complex tech concepts into understandable insights for a broader audience.
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