Chainalysis alleges the $94.66M ICE contract to TRM Labs violated bidding rules. The Court of Federal Claims hears arguments Sept. 2 on whether the award stands or is reopened.
Chainalysis has sued the U.S. government over a $94.66 million Immigration and Customs Enforcement contract awarded to TRM Labs, alleging the bidding process was unfair.
The lawsuit was filed July 27 in the U.S. Court of Federal Claims. TRM Labs joined the case on the government's side four days later. A court order sealed the complaint and set an expedited briefing schedule, according to court records.
ICE awarded TRM Labs the contract July 1 for blockchain analytics services supporting the Homeland Security Task Force's National Coordination Center Cyber Disruption Center, procurement records show. The agency said in June it planned to award the deal to a single provider.
Corporate attorney Ariel Givner described the case on X as a fight between two blockchain analytics firms over who gets the government business.
“Both sell tools that agencies use to track crypto,” Givner wrote.
The specific violations Chainalysis alleges in its complaint cannot be verified because the filing is sealed. The public docket confirms an active bid protest but makes no judicial determination about liability or improper procurement.
Under the expedited schedule, the government and TRM Labs have until Aug. 21 to file cross-motions and responses. Chainalysis must respond by Aug. 26. Final replies are due Aug. 31, with a joint appendix Sept. 1. The court will hear arguments Sept. 2.
A win for Chainalysis could force ICE to reopen the bidding for the contract, giving competing blockchain intelligence providers another shot at the work. The court could also require the agency to reassess its single-vendor justification against federal procurement rules. A ruling upholding the award would leave TRM Labs in place.
The case has a broader subtext. ICE has ramped up spending on surveillance and data-analysis tools over the past two years, according to a report from immigrant advocacy organization Mijente and the legal groups Just Futures Law and Surveillance Resistance Lab.
The report said ICE has active contracts with 11 surveillance-tech firms. Combined payouts reached $310 million in 2025 and hit $513 million in 2026, up from less than $50 million in 2013. The agencies within Homeland Security that handle immigration enforcement now get about $85 billion in annual funding.
Major recipients include Palantir Technologies and Anduril Industries. Palantir handles data analytics under the contracts. Anduril builds AI-powered border towers, drones, and sensors. Palantir has said it does not collect or store data, conduct surveillance, or set immigration policy.
Both Chainalysis and TRM Labs build tools that track transactions across blockchains and identify wallets tied to illegal activity. The contract covers cryptocurrency transaction tracking, blockchain analysis, open-source intelligence gathering, asset recovery services, and mapping of criminal networks.
The Sept. 2 hearing will determine whether the existing contract stands or ICE has to run a new procurement.
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