Graphite, the Israeli spyware acquired by ICE
The U.S. Immigration and Customs Enforcement (ICE) agency has reactivated a $2 million contract with Paragon Solutions, an Israeli-founded spyware company whose products can hack any cell phone. The agreement includes a fully configured software package, including licensing, hardware, training, and ongoing maintenance.
The original contract with Paragon was signed in September 2024 during the Biden administration, but was put on hold after reports emerged that the technology, known as Graphite, had been misused abroad. Biden’s March 2023 executive order explicitly restricted U.S. agencies from employing spyware vendors whose tools posed “significant counterintelligence and security risks” or had been misused by foreign governments to suppress dissent.
For months, the deal remained under review. However, Florida-based private equity firm AE Industrial Partners acquired Paragon and merged it with Virginia-based intelligence contractor REDLattice, paving the way for its reinstatement. Paragon is now considered a domestic partner rather than a foreign vendor, as it not only has U.S. ownership but also deep ties to former CIA officials and military personnel, according to multiple reports.
Public contracting announcements show that ICE’s Homeland Security Investigations cyber division quietly lifted the suspension order on August 29.
Graphite is one of the most powerful commercial spy tools available. Once installed, it can take complete control of the target’s phone and extract text messages, emails, and photos; infiltrate encrypted apps like Signal and WhatsApp; access cloud backups; and covertly activate microphones to turn smartphones into listening devices.
Although companies like Paragon insist their tools are intended to combat terrorism and organized crime, past use suggests otherwise. Earlier this year, Graphite was linked to a surveillance campaign in Italy targeting at least 90 journalists, migrant rights activists, and even associates of Pope Francis. Paragon severed its ties with Italy following public outrage, but the incident heightened skepticism about Graphite’s potential misuse. [Continue reading…]