Ethical Spyware Firm Paragon Faces Scrutiny Over ICE Contract
Paragon, an Israeli spyware company claiming ethical operations, faces scrutiny over its potential contract with ICE amid concerns about misuse of surveillance tools.
Paragon, an Israeli spyware company that brands itself as an "ethical" surveillance vendor, is under scrutiny for its potential contract with U.S. Immigration and Customs Enforcement (ICE). The company previously cut ties with Italy after its spyware was used to target journalists, but now faces a new ethical dilemma with ICE.
The ICE Contract
Paragon signed a $2 million one-year contract with ICE in September 2024, but the deal remains under review and has not yet been activated. The contract could provide ICE with powerful surveillance tools as the agency ramps up immigration enforcement under the Trump administration.
Ethical Dilemma
Paragon has positioned itself as an ethical vendor, but its potential partnership with ICE raises questions. The agency has been criticized for its aggressive immigration raids and reliance on controversial data tools, including those from Palantir.
Government Review
The Biden administration issued an executive order restricting the use of commercial spyware by U.S. agencies, and Homeland Security issued a stop-work order on the Paragon contract. Nine months later, the contract remains in limbo, with no clear resolution.
Paragon's Silence
Paragon has refused to comment on its plans if the contract is approved. The company previously stated it only sells to "a select group of global democracies," but its silence on ICE has drawn criticism from advocacy groups like Access Now.
Broader Implications
Paragon's case highlights the challenges of "ethical" spyware vendors operating in politically charged environments. As governments change, companies like Paragon may face increasing pressure to reevaluate their client relationships.
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About the Author

David Chen
AI Startup Analyst
Senior analyst focusing on AI startup ecosystem with 11 years of venture capital and startup analysis experience. Former member of Sequoia Capital AI investment team, now independent analyst writing AI startup and investment analysis articles for Forbes, Harvard Business Review and other publications.