Ethical Spyware & ICE: Justifying Tech Sales?

Paragon Spyware and Ethical Considerations

Paragon, an Israeli firm specializing in surveillance technology, positions itself as an “ethical” vendor. However, the company recently faced criticism after Italy was discovered utilizing Paragon’s tools for the surveillance of journalists earlier this year.

In an unprecedented move, Paragon responded by terminating Italy’s access to its surveillance products. This marked the first instance of a spyware company publicly identifying a customer following misuse of its technology.

A Potential Contract with ICE

Currently, Paragon is navigating a new potential ethical challenge: a possible agreement allowing U.S. Immigration and Customs Enforcement (ICE) agents to employ its spyware.

A $2 million, one-year contract signed with ICE in September 2024 is presently under review and has not been activated. The company has confirmed to TechCrunch that it has not yet provided ICE’s Homeland Security Investigations with its spyware tools.

Since January, the Trump administration has authorized ICE to conduct extensive immigration raids throughout the United States. These operations have resulted in the detention of thousands of migrants, and, in some cases, U.S. citizens. This enforcement is aided by data from federal databases and technology from Palantir.

Considering the anticipated increase in ICE’s budget following the enactment of the Big Beautiful Bill Act, spyware could become a significant asset in the administration’s immigration enforcement efforts.

With the contract nearing its expiration date, Paragon may ultimately refrain from supplying its spyware to ICE. However, until September 29th, the U.S. government retains the ability to approve the contract, compelling Paragon to decide on the use of its tools domestically.

The company is currently declining to discuss this dilemma. Paragon declined to comment on its plans should the contract be approved, or its future relationship with ICE, when questioned by TechCrunch.

Contract Review and Biden-Era Executive Order

Paragon’s contract with ICE has been paused since its signing. A stop-work order was issued by Homeland Security to assess the contract’s compliance with a Biden-era executive order.

This order aims to restrict U.S. government agencies from utilizing commercial spyware that has been, or could be, misused by foreign governments to infringe upon human rights or target Americans abroad.

A Biden administration official informed Wired at the time that the government had “immediately engaged” Homeland Security leadership to determine if the contract adhered to the executive order’s stipulations.

After nine months, Paragon’s contract with ICE remains unresolved, and officials within the Trump White House have not provided an update on its status.

Trump administration spokesperson Abigail Jackson directed TechCrunch’s inquiries to Homeland Security and declined to comment on the administration’s stance regarding the Biden-era spyware executive order, which is still in effect.

Homeland Security and ICE spokespersons did not respond to requests for comment from TechCrunch.

Historical Reticence and Shifting Positions

Historically, spyware companies have been hesitant to disclose their clientele, often due to concerns about reputational harm or jeopardizing government contracts. Following revelations that approximately 90 WhatsApp users, including journalists and human rights advocates, were targeted with Paragon’s spyware, the company attempted to distance itself from the incidents.

John Fleming, Paragon’s executive chairman, stated that the company only sells to “a select group of global democracies — principally, the United States and its allies.”

This statement suggests Paragon intends to be associated with governments deemed responsible. The company’s response to the Italy situation appears to support this position.

By branding itself as an ethical spyware vendor, Paragon has assumed the responsibility of evaluating its business partners. This also subjects its government customers – including Italy and ICE – to scrutiny regarding their ethical practices.

As governments and their leadership evolve, Paragon may be required to reassess its collaborations.

“Given this administration’s record of attacks on 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 dedicated to exposing spyware abuses.