Can an ‘ethical’ spyware maker justify providing its tech to ICE?

Paragon, an Israeli spyware company that brands itself as an “ethical” surveillance vendor, is once again facing intense scrutiny over its operational choices. Earlier this year, the company made headlines when Italy was found using its tools to spy on two journalists, prompting Paragon to take the unprecedented step of publicly cutting ties with the Italian government over the misuse of its products.

Now, Paragon finds itself at the precipice of a new, equally profound ethical dilemma: whether to permit U.S. Immigration and Customs Enforcement (ICE) agents to utilize its sophisticated spyware.

A $2 million one-year contract, inked in September 2024 between Paragon and ICE, specifically for its Homeland Security Investigations arm, remains under review and has not yet been activated. Paragon has confirmed to TechCrunch that it has not yet supplied its surveillance tools to ICE under this agreement.

The context surrounding this potential collaboration is significant. Since January, the Trump administration has ramped up large-scale immigration raids across the U.S., leading to the detention of thousands of migrants, including U.S. citizens. These operations have heavily relied on data from federal databases and technology provided by govtech giant Palantir. With a substantial budget increase expected for ICE following the passing of Trump’s flagship Big Beautiful Bill Act, the deployment of advanced spyware could dramatically enhance the Trump administration’s immigration enforcement capabilities.

With just two months remaining before the contract’s expiration on September 29, the U.S. government holds the power to approve it at any moment. This looming deadline forces Paragon into a precarious position, demanding a clear decision on the use of its technology within U.S. borders.

However, Paragon has remained notably silent on its intentions. When approached by TechCrunch, the company declined to disclose its plans should the contract pass review, or to elaborate on the future of its relationship with ICE if the agreement proceeds.

The contract has been on hold since its signing, subjected to a near-immediate stop-work order issued by Homeland Security. The order’s objective is to ascertain whether the contract aligns with a Biden-era executive order. This order specifically restricts U.S. government agencies from employing commercial spyware that has been, or could be, exploited by foreign governments to infringe upon human rights or target Americans abroad.

A Biden administration official previously informed Wired that the U.S. government had “immediately engaged” with top leadership at Homeland Security, which oversees ICE, to ensure the contract adhered to the executive order’s strictures. Nine months on, the status of Paragon’s contract with ICE remains in limbo, with officials in the Trump White House offering no new updates.

Trump administration spokesperson Abigail Jackson redirected TechCrunch’s inquiries to Homeland Security and refrained from commenting on the administration’s stance regarding the existing Biden-era spyware executive order. Similarly, spokespersons for Homeland Security and ICE did not provide comments when contacted by TechCrunch.

Historically, spyware firms have been reluctant to disclose their clientele, fearing reputational damage or jeopardizing lucrative government agreements. Following WhatsApp’s revelation earlier this year that approximately 90 of its users, including journalists and human rights dissidents, had been targeted with Paragon’s spyware, the company sought to distance itself from the attacks. John Fleming, Paragon’s executive chairman, stated to TechCrunch at the time that the company only sells to “a select group of global democracies — principally, the United States and its allies.”

This statement underscored Paragon’s aspiration to be perceived as a responsible vendor. Its decisive action in cutting ties with Italy further reinforced this image of an “ethical” spyware provider. Yet, by claiming this mantle, Paragon has inherently taken on the responsibility of discerning the ethical conduct of its customers. This commitment opens the door for public scrutiny of its government clients, whether it’s the Italian government or ICE. As political landscapes shift and leadership changes, Paragon may find itself continually re-evaluating its partnerships and their alignment with its professed values.

Michael De Dora, U.S. advocacy manager at Access Now, a nonprofit dedicated to exposing spyware abuses, encapsulated the sentiment of many human rights advocates: “Given this administration’s record of attacks on human rights and civil society organizations, we hope that Paragon would reconsider the agreement.”