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ICE Revives $2 Million Spyware Contract Amid Privacy Fears

By Maya Maddox • Sep 04, 2025

US Immigration and Customs Enforcement (ICE) has quietly reactivated a $2 million contract with Paragon Solutions, a spyware firm whose powerful Graphite software can reportedly infiltrate phones and encrypted messaging apps. This move comes as the Trump administration rescinded a Biden-era pause on such contracts. It signals a sharp pivot toward more aggressive digital surveillance tactics within American borders. The reactivation of this contract raises serious alarms about privacy, due process, and the erosion of digital rights protections under the guise of national security.

A Chilling Return to Spyware Surveillance

According to The Guardian, the contract with Paragon Solutions was signed in late 2024 but was quickly halted by the Biden administration amid concerns over compliance with executive orders restricting the use of commercial spyware. These orders aimed to prevent US agencies from employing invasive technologies that could undermine civil liberties or target journalists and activists. However, in early September 2025, the Trump administration reportedly lifted the stop-work order, allowing ICE's cyber division to proceed with the deal. Critics warn this could reopen the door to warrantless hacking operations on American soil.

According to WebProNews, Paragon's Graphite spyware is designed to penetrate encrypted communication platforms and extract data from targeted devices remotely. The company markets itself as an "ethical" player in the spyware industry, claiming strict guidelines that prohibit targeting journalists or civil society figures. Yet, the firm's record is more complicated. Earlier this year, Italy reportedly terminated its contract with Paragon following allegations that the spyware was used to hack journalists and activists. This scandal sparked parliamentary investigations and public outcry. According to Reuters, a parliamentary report detailed these allegations, highlighting vulnerabilities in spyware deployment even by governments.

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Political Cover and Corporate Restructuring

Paragon's acquisition by US-based private equity firm AE Industrial Partners in December 2024, valued at approximately $500 million, appears to have smoothed the path for the contract's revival. The company now operates under American oversight, which reportedly alleviated some concerns about foreign influence and compliance with US executive orders. Reports suggest this US ownership and oversight were factors in easing concerns about compliance and foreign influence.

The timing of this contract's revival is particularly notable. The Trump administration has publicly promised a hardline approach to immigration enforcement, including mass deportations, as stated in official campaign platforms and policy statements. This context suggests Paragon's spyware could become a critical tool in tracking undocumented immigrants and criminal networks. However, it also raises the specter of warrantless surveillance and potential abuse of power.

Privacy Concerns and Public Outcry

The reactivation of this contract has sparked unease among privacy advocates, civil liberties groups, and the general public. On platforms including X, formerly Twitter, privacy advocates and civil liberties groups have reportedly expressed concerns about the dangers of expanding government surveillance capabilities without adequate oversight. Critics warn that tools like Graphite could be used to monitor vulnerable populations, eroding trust in law enforcement and government agencies.

The use of spyware by ICE is not new. The agency has reportedly employed technologies previously such as Clearview AI for facial recognition, which itself has been the subject of controversy and legal challenges. The Paragon deal represents a significant escalation, granting ICE the ability to remotely access private communications and data on personal devices, potentially without judicial authorization. However, it is important to note that concerns about warrantless surveillance have been raised by critics and advocacy groups, rather than confirmed evidence of illegal activity.

National Security or Overreach?

Supporters of the contract argue that Paragon's spyware enhances ICE's ability to dismantle criminal networks and protect national security. The software's capacity to breach encrypted apps could provide critical intelligence in investigations involving human trafficking, drug smuggling, and other serious crimes. However, the lack of transparency surrounding the contract and the potential for misuse raise troubling questions about the balance between security and civil liberties.

The Biden administration's initial stop-work order reflected an awareness of these risks, attempting to impose ethical boundaries on the use of commercial spyware. The Trump administration's reversal allows expanded use of spyware, raising concerns about privacy safeguards and oversight. This potentially sets a precedent for broader surveillance powers in other federal agencies.

What This Means for Digital Rights

The revival of ICE's contract with Paragon Solutions signals a broader rollback of digital rights protections that had gained traction in recent years. Executive orders and policy measures aimed at curbing warrantless surveillance and protecting encrypted communications are now at risk of being undermined. Privacy experts and advocacy groups warn that this shift could have lasting implications for how Americans' digital privacy is respected — or violated — in the name of law enforcement.

For individuals concerned about their privacy, the reactivation of this contract is a stark reminder that national security tools can slip past ethical boundaries when political winds change. The deployment of spyware like Graphite inside the United States raises the possibility that private communications could be intercepted without due process, challenging fundamental rights enshrined in the Constitution.

The Road Ahead

As ICE moves forward with Paragon's spyware, the public and lawmakers will need to grapple with the consequences of this decision. Calls for greater transparency, oversight, and accountability are likely to intensify. Meanwhile, the technology's deployment under the Trump administration may serve as a bellwether for how far digital surveillance will extend in the coming years.

The story of ICE's $2 million spyware deal is more than a contract renewal. It offers a window into the evolving relationship between technology, policy, and civil liberties in America. As you consider the implications, remember that the tools designed to protect can also threaten the very freedoms they claim to defend.

You might want to ask yourself: How much privacy are you willing to sacrifice in the name of security? And who gets to decide where that line is drawn?

References: ICE Revives $2M Spyware Contract with Paragon Amid Privacy Concerns | ICE to Gain Access to Spyware After Biden Order Dropped | ICE Signs $2 Million Contract With Spyware Maker Paragon Solutions | Ice obtains access to Israeli-made spyware that can hack phones and encrypted apps | Italy and Israeli Paragon part ways after spyware affair

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