ICE Confirms Paragon Spyware Use as U.S. Commercial Spyware Policy Faces Scrutiny
U.S. Immigration and Customs Enforcement confirmed to lawmakers that it bought and used Paragon Solutions spyware, including Graphite, in investigations tied to drug trafficking, fentanyl networks, and other organizations using encrypted communications. Acting ICE Director Todd Lyons said the deployment complied with constitutional requirements and the 2023 executive order restricting government use of commercial spyware, but House Democrats including Rep. Summer Lee said ICE had not provided enough documentation, safeguards, or oversight to justify such invasive surveillance. The disclosure followed the reactivation of ICE’s Paragon contract after an earlier suspension for review, and came amid wider controversy over reports linking Paragon spyware to targeting of journalists and activists.
The admission intensified concerns that U.S. policy may be softening toward the commercial spyware industry even as evidence mounts that these vendors are driving serious cyber abuse. Reporting and research cited growing alarm over the lifting of sanctions on Intellexa executives, new U.S.-linked ownership of NSO Group and Paragon, and the expanding role of brokers, resellers, and other intermediaries that help spyware vendors evade export controls and obscure supply chains. Analysts also noted that Google attributed more zero-day exploitation to commercial surveillance vendors than to traditional state-backed groups in 2025, while lawmakers pressed for briefings on federal spyware use and U.S. investment in firms long associated with abuses involving Pegasus, Predator, and related surveillance tools.

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How this story unfolded
6 events from the most recent confirmed update back to the earliest known activity.
Rep. Summer Lee seeks Commerce briefing on spyware use
Rep. Summer Lee asked the Commerce Department to brief Congress on federal use of commercial spyware and on U.S. investment in spyware vendors, citing concerns about the administration's posture toward the industry.
House Democrats criticize ICE spyware deployment
Three House Democrats—Summer Lee, Shontel Brown, and Yassamin Ansari—publicly criticized ICE's confirmed use of Paragon spyware, arguing the agency had not provided sufficient documentation, safeguards, or meaningful oversight.
ICE confirms use of Paragon spyware
ICE confirmed to lawmakers that it bought and used Paragon Solutions spyware in investigations involving drug trafficking and other targets using encrypted communications, saying the use complied with constitutional requirements and applicable policy restrictions.
Atlantic Council publishes spyware intermediaries report
The Atlantic Council published an issue brief examining how brokers, resellers, infrastructure providers, and other intermediaries enable proliferation in the offensive cyber capabilities and spyware market while obscuring accountability.
OMB rescinds federal software supply chain guidance
A recent OMB memo rescinded earlier Biden administration federal software supply chain guidance, making mechanisms such as secure software development attestations and SBOM requests optional rather than durable requirements.
Executive order targets cyber-enabled fraud
On March 6, the U.S. government issued an executive order aimed at raising costs for cybercriminals through coordination, disruption, prosecutions, intelligence sharing, resilience measures, and diplomatic pressure on states that shelter such operations.
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Sources
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One House Democrat is pressing Commerce on the government’s spyware use | CyberScoop
cyberscoop.com
Open sourceICE Uses Graphite Spyware - Schneier on Security
schneier.com
Open sourceHouse Dems decry confirmed ICE usage of Paragon spyware | CyberScoop
cyberscoop.com
Open sourceICE says it bought Paragon's spyware to use in drug trafficking cases | TechCrunch
techcrunch.com
Open sourceIntermediaries Driving Global Spyware Market Expansion
darkreading.com
Open sourceMythical Beasts: Investigating the role of intermediaries in the proliferation of offensive cyber capabilities - Atlantic Council
atlanticcouncil.org
Open sourceCommercial Spyware Opponents Fear US Policy Shifting
darkreading.com
Open sourceIf consequences matter, they should apply to vendors, too | CyberScoop
cyberscoop.com
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