Chainalysis takes ICE to court over $95M TRM Labs deal

Chainalysis Government Solutions is taking the US government to court. The company claims immigration agency ICE unlawfully awarded a nearly $95 million blockchain analysis contract directly to competitor TRM Labs, without holding a public tender. Chainalysis is asking the court to block the award and force a fair, open procedure. An oral hearing is scheduled for 2 September.

In brief:

• Chainalysis is taking ICE to court over the behind-closed-doors award of a $94.66 million contract to TRM Labs
• It is reportedly the largest blockchain analysis contract ever awarded by the US government
• Chainalysis is asking the judge to block the award and require an open tender

Largest blockchain contract ever without public tender

The contract, valued at $94.655.840, is intended for forensic software and support services for criminal investigations by the Homeland Security Task Force. According to Chainalysis, it is the largest blockchain analysis contract ever awarded by the US government.

Precisely because of its size, an open and full tender procedure should have taken place, Chainalysis argues in the court documents. Instead, ICE chose to bypass competition entirely and award the contract directly to TRM Labs.

Criteria allegedly tailored to TRM Labs

Chainalysis has filed seven separate claims. The company alleges, among other things, that ICE assessed its bid against requirements that were not fully included in the final statement of work. Furthermore, several award criteria would closely align with TRM Labs’ existing products and partnerships, which, according to Chainalysis, makes the procedure unfair.

The case has been brought before the US federal procurement tribunal, the Court of Federal Claims. The court will hear the case orally on 2 September. Whether the award to TRM Labs will be suspended in the meantime is not yet known.