Paragon Cancels Italy Contracts Over Spyware Attack Investigation Refusal

Spyware Firm Accuses Italy of Blocking Investigation into Journalist Surveillance

Paragon, a developer of spyware, has publicly stated that the Italian government declined its offer to assist in determining whether its technology was utilized to monitor a journalist. This assertion was made in a statement released on Monday.

Severed Ties with Italian Clients

According to reports initially published by Haaretz, Paragon attributes its decision to terminate contracts with Italian government entities to this refusal of assistance. The company maintains it proactively sought to cooperate with authorities.

“A mechanism was proposed by the company to both the Italian government and parliament to ascertain if its system had been deployed against the journalist, in contravention of Italian legislation and the stipulations of their contractual agreements,” the statement detailed. “Following the Italian authorities’ decision not to pursue this solution, Paragon concluded its contracts within Italy.”

Confirmation and Media Handling

TechCrunch received confirmation from Paragon regarding the accuracy of the statement. Subsequent inquiries directed to John Fleming, Paragon’s executive chairman, were handled by Emily Horne of WestExec Advisors, who indicated that all media requests would be directed to the information contained within the Haaretz article.

First Public Disclosure of Contract Termination

This marks the first instance of a spyware vendor publicly announcing the termination of a client relationship following allegations of misuse.

Background of the Surveillance Scandal

The accusation from the spyware manufacturer represents the latest development in a scandal that surfaced in January, when WhatsApp disclosed a widespread hacking operation targeting its user base. The messaging platform alerted approximately 90 individuals who were identified as targets of spyware developed by Paragon, a company co-founded by former Israeli Prime Minister Ehud Barak.

Paragon's Positioning in the Market

Paragon, which currently holds a contract with U.S. Immigration and Customs Enforcement, has actively promoted itself within the U.S. and European markets as a more accountable vendor in comparison to its industry predecessors.

Francesco Cancellato, the director of the news website Fanpage and the first individual to report receiving a notification from WhatsApp, is the journalist referenced in Paragon’s statement.

Parliamentary Inquiry and Government Response

Paragon’s statement is a direct response to a report released last week by COPASIR, an Italian parliamentary committee tasked with investigating the spyware controversy. The committee’s findings indicated no evidence that Cancellato was targeted by Italy’s intelligence agencies, AISI and AISE, which were confirmed as Paragon customers.

Italian Government Disputes Paragon's Account

Shortly after Haaretz published Paragon’s statement, the Italian government contested the company’s claims. According to unnamed sources cited by Italian news agency ANSA, the decision to suspend and ultimately terminate the contract with Paragon was a mutually agreed-upon outcome.

National Security Concerns

These sources further stated that the Department of Information for Security (DIS), the Italian government body overseeing AISE and AISI, declined Paragon’s offer to examine the logs of the agencies’ Graphite spyware systems. The rationale provided was that such access would expose sensitive data to a private foreign entity and potentially jeopardize national security.

Allowing Paragon to participate in the review, the sources asserted, could damage the reputation of Italian intelligence agencies within the international community.

Lack of Comment from Key Parties

Neither COPASIR nor the Italian government, under the leadership of Prime Minister Giorgia Meloni, responded to requests for comment from TechCrunch.

Calls for Transparency and Further Investigation

Cancellato responded to Paragon’s statement with a video posted on Fanpage, questioning the veracity of the accounts. “Who is lying in this story – COPASIR or Paragon?” he asked.

“To ascertain the truth, Paragon simply needs to officially disclose who surveilled Fanpage. They claim they can identify the responsible party; we demand they reveal it definitively,” Cancellato stated.

Additional Cases of Potential Surveillance

In late April, Ciro Pellegrino, a reporter for Fanpage, reported receiving a notification from Apple indicating he had been targeted by government spyware. This case was not addressed in COPASIR’s investigation.

Lawful Surveillance Confirmed in Some Instances

COPASIR did confirm that other individuals targeted by Paragon spyware were lawfully monitored. These included Luca Casarini and Beppe Caccia, associated with the Italian nonprofit Mediterranea Saving Humans, which provides assistance to migrants attempting to cross the Mediterranean Sea, and David Yambio, the president and co-founder of Refugees in Libya, an NGO operating in Italy.

The committee stated that these individuals were legitimately investigated due to their involvement in activities related to alleged illegal immigration.

Unconfirmed Surveillance of a Priest

However, COPASIR concluded that there was no evidence of surveillance against Mattia Ferrari, a priest working with Mediterranea Saving Humans, who also received a notification from WhatsApp.

COPASIR Defends its Inquiry

In a statement to ANSA on Monday, COPASIR expressed its willingness to declassify the transcripts of its hearing with Paragon representatives held on April 9, in order to defend the integrity of its investigation. The committee also conveyed its surprise at Paragon’s public statement.