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The Paragon Puzzle: Unraveling the Complexities of US Government Spying Contracts


The United States Immigration and Customs Enforcement (ICE) agency has signed a lucrative contract worth $2 million with Israeli commercial spyware vendor Paragon Solutions, sparking concerns about the misuse of such technology. As part of a broader effort to reshape the commercial spyware market, the US government aims to prevent the misuse of spyware while promoting its responsible use.

  • The US Immigration and Customs Enforcement (ICE) agency has signed a $2 million contract with Israeli spyware vendor Paragon Solutions.
  • The contract covers a proprietary solution including license, hardware, warranty, maintenance, and training for one year.
  • Paragon Solutions has a history of working with government agencies worldwide, including the US Drug Enforcement Administration.
  • A US private equity fund is reportedly in talks to acquire control of Paragon, valuing it at $1 billion.
  • The contract signing comes as part of the US government's effort to crack down on misused commercial spyware technology and promote responsible use.
  • Paragon Solutions characterizes itself as a scrupulous spyware maker, but concerns remain about the misuse of its technology.



  • ICE Signs $2 Million Contract With Spyware Maker Paragon Solutions


    In a revelation that has sent shockwaves through the world of cybersecurity, it has emerged that the United States Immigration and Customs Enforcement (ICE) agency has signed a lucrative contract worth $2 million with Israeli commercial spyware vendor Paragon Solutions. This news comes at a time when the US government is engaged in a comprehensive effort to reshape the commercial spyware market, a move aimed at preventing the misuse of such technology while promoting its responsible use.

    According to documents reviewed by WIRED, the one-year contract between the company's US subsidiary and ICE's Homeland Security Investigations Division 3 was signed on September 27 and covers a "fully configured proprietary solution including license, hardware, warranty, maintenance and training." The contract is notable for being awarded under the FAR 6.302-1 rule reserved for unique and innovative services not otherwise available to the government and not via the typical competitive process.

    The details of this contract have raised eyebrows given Paragon's history of working with various government agencies around the world. It is known that the US Drug Enforcement Administration had previously used Paragon's flagship product, Graphite—a spyware that reportedly extracts data primarily from cloud backups—and that the company has received investment from prominent venture capital firms such as Battery Ventures, which is considered one of the world’s top venture capital firms.

    Furthermore, it has been reported that a US private equity fund with a portfolio of security companies has been in talks to acquire control of Paragon, estimating its valuation at $1 billion. This development underscores the company's growing presence and influence in the global spyware market.

    The signing of this contract by ICE also comes as part of a broader effort by the US government to crack down on commercial spyware vendors who have been accused of misusing their technology for nefarious purposes. In March 2023, President Joe Biden signed an executive order effectively restricting the use of commercial spyware technology while promoting its responsible use that aligns with human rights.

    The move has been backed by a coalition of countries including Germany, France, UK, Japan, and South Korea, which have come together to counter the proliferation and misuse of commercial spyware. Paragon, which characterizes itself as a scrupulous kind of spyware maker, is likely responding to this US government’s global push for responsible surveillance.

    The company boasts on its website that it provides its customers with "ethically based tools," while one of its investors maintains that the software provides “cutting-edge capabilities that make the world safer.” Paragon also states that it limits its extraction of information from targeted devices "to conversations on chat apps" and that it “works solely with police forces and intelligence agencies that meet the standards of an enlightened democracy, which includes only 39 countries."

    The fact that the company has neither been placed on an entity list nor have any of its executives been sanctioned by the Biden administration suggests that Paragon’s lobbying efforts have been successful. In addition, the executive order leaves enough margin for the deployment of tools like Graphite.

    Meanwhile, Paragon continues to grow and is advertising several roles in Israel. In the US, the company boosted its presence in the wake of the signing of the executive order and started hiring intelligence veterans at its subsidiary, “hoping it would pick up new business.” Fresh reports from February 2024 confirmed the steady growth.

    The $2 million contract with ICE is tangible proof that Paragon’s approach is paying off. However, concerns about the misuse of such technology remain as it remains to be seen whether Graphite's deployment will align with the protection of human rights, privacy, and democracy.



    Related Information:

  • https://www.wired.com/story/ice-paragon-solutions-contract/

  • https://www.ft.com/content/11cb394d-a13e-4826-b580-823b9367fedb

  • https://whatsnew2day.com/ice-signs-2-million-contract-with-spyware-maker-paragon-solutions/


  • Published: Tue Oct 1 14:18:03 2024 by llama3.2 3B Q4_K_M













         


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