The U.S. Immigration and Customs Enforcement (ICE) has revived a $2 million agreement with Paragon Solutions, a surveillance technology firm originally founded in Israel. The deal, which had been frozen for months, provides ICE with a complete spyware system, including software licenses, specialized hardware, training for agents, and technical support.
The contract was initially signed in September 2024 under the Biden administration. But soon after, it was paused when Paragon’s flagship spyware, known as Graphite, became associated with controversial surveillance operations overseas. That pause reflected growing unease inside Washington, especially after President Biden’s 2023 executive order, which specifically banned federal agencies from using spyware tools that posed major security risks or had been linked to government abuses.
Restructuring Helps Paragon Pass as “Domestic”
The deal returned to life after a significant ownership shake-up. Paragon was acquired by Florida-based private equity firm AE Industrial Partners and merged with REDLattice, an intelligence contractor based in Virginia. This shift allowed the company to be reclassified as a U.S.-owned partner, rather than a foreign vendor.
Paragon now has strong connections to former CIA officials and military veterans, which helped ease earlier doubts. On August 29, federal procurement notices revealed that ICE’s Homeland Security Investigations cyber unit formally lifted the suspension, clearing the way for the contract to proceed.
The Power of Graphite
Graphite is considered one of the most advanced commercial spyware systems available today. Once installed on a smartphone, it can:
- Seize full control of the device.
- Retrieve text messages, emails, photos, and documents.
- Break into encrypted platforms like WhatsApp and Signal.
- Access cloud storage backups.
- Secretly switch on the microphone to turn the device into a live listening tool.
This makes Graphite comparable to Pegasus, the well-known spyware built by Israel’s NSO Group, which has been at the center of global surveillance scandals.
A Track Record That Raises Questions
Paragon has always insisted that Graphite is designed to fight terrorism and organized crime, but past cases have fueled concerns about misuse.
In early 2025, the spyware was linked to a sweeping surveillance campaign in Italy. That operation reportedly targeted at least 90 people, among them investigative journalists, migrant-rights advocates, and even individuals close to Pope Francis. The backlash forced Paragon to pull out of its Italian contracts, but the damage to its reputation lingered.
Adding to the pressure, WhatsApp announced this year that it had blocked a hacking attempt involving Paragon’s tools. The company followed up with a cease-and-desist order, echoing its long-running battles against spyware firms accused of exploiting its platform.
Expanding ICE’s Surveillance Reach
Reinstating the Paragon deal fits into ICE’s broader strategy of expanding its surveillance capacity. Under Homeland Security Secretary Kristi Noem, the Department of Homeland Security has intensified its monitoring of immigrants, including efforts to scan and track social media activity. Reports suggest that DHS is also considering new systems to track hundreds of thousands of immigrants more directly.
With Graphite, ICE now has the ability to penetrate smartphones themselves, moving beyond data collection and into direct, covert monitoring. Critics fear this opens the door to targeting immigrant communities, activists, or political opponents, creating the potential for serious civil rights violations.
Concerns from Privacy Advocates
Civil liberties groups warn that this development represents a troubling expansion of government power. ICE already uses services from major data analytics contractors like Palantir and Babel Street, which collect and analyze huge volumes of information. Adding Graphite to that mix could give the agency unprecedented access to personal lives.
Another issue is Paragon’s international footprint. Because the company markets its spyware to governments worldwide, foreign intelligence agencies could potentially learn about the tools the U.S. is now relying on. Researchers say this creates unavoidable counterintelligence risks.
Lack of Transparency Fuels Distrust
Paragon claims it partners only with democratic governments and denies working with clients who misuse its products. However, the company does not publish its client list or explain how it enforces safeguards. This secrecy continues to trouble watchdogs, especially given the U.S. government’s frequent criticism of spyware use in countries with poor human rights records.
U.S. Credibility at Stake
By adopting spyware like Graphite, the U.S. risks weakening its own moral authority. For years, American officials have condemned foreign governments for using similar tools to silence dissent. Now, ICE’s embrace of Paragon’s technology risks creating an image of double standards.
Digital rights advocates argue that Washington could find it harder to pressure other countries to curb surveillance abuses while deploying the same type of spyware at home. The issue, they say, is not only about security but about whether the U.S. can still present itself as a credible defender of digital freedoms.
