Chainalysis Government Solutions sues over ICE’s $94.6 million sole-source TRM Labs contract, challenging the federal government’s procurement decision
Chainalysis Government Solutions has sued the U.S. government over a $94.6 million crypto investigation contract given to rival TRM Labs. The company is challenging ICE’s decision to award the deal without competition.
Chainalysis said that the contract should have been opened to other qualified blockchain analytics firms too.
Chainalysis filed the case on July 27, 2026, in the U.S. Court of Federal Claims, challenging a contract awarded by U.S. Immigration and Customs Enforcement (ICE) to TRM Labs.
The contract, valued at exactly $94,655,840, covers forensic blockchain software and support services for Homeland Security Task Force investigations. It began on July 1 and runs through June 30, 2027.
The procurement covers tools and support for cryptocurrency tracing, blockchain analysis, cybercrime and scam investigations, asset recovery, open-source intelligence, and AI-based case work.
Chainalysis argues that ICE should have allowed qualified companies to compete instead of awarding the contract directly to TRM Labs.
In its filing, the company described ICE’s decision as “arbitrary, capricious, and unreasonable.”
However, the full complaint remains under seal because it contains confidential and proprietary information.
Federal procurement records show ICE published a notice in June stating its intention to award the work to TRM Labs without a normal bidding process. However, other companies were still allowed to send information showing that they could do the work.
The government said the contract required tools to track crypto transactions, study blockchain activity, gather public information and support cyber investigations. The work would also help Homeland Security Task Force investigations and other urgent operations.
However, public records do not clearly explain why Chainalysis was not selected. The government’s full reason for giving the contract directly to TRM Labs has not been made public.
This is important because Chainalysis says it sent its own capability statement after ICE announced its plan to choose TRM Labs
TRM Labs has already worked with ICE on blockchain investigation services. Federal records show ICE awarded TRM a $9.3 million indefinite-delivery contract in 2022 for forensic software and related services.
TRM also received a $1.95 million ICE delivery order in September 2025 for blockchain investigation products and services.
Chainalysis has a similar history with the agency. ICE previously awarded Chainalysis several noncompetitive orders, including a contract order worth about $3.4 million in September 2024 and another worth about $262,000 in May 2026.
TRM Labs has declined to comment on the lawsuit. The company has instead been allowed to participate directly in the case after moving to intervene on July 28. This means TRM can defend the contract it won while the U.S. government responds to Chainalysis.
Chainalysis’ full legal arguments and the specific remedy it wants are not yet public because its complaint remains sealed.
For now, Chainalysis filed its motion for judgment on the administrative record on August 11, while the government and TRM are scheduled to submit their responses and cross-motions on August 21. Chainalysis can respond on August 26, followed by replies on August 31.
The court has scheduled oral arguments for September 2 at 10 a.m. EDT in Washington, D.C. The government has asked for a decision by September 10.
A ruling for Chainalysis could force ICE to reconsider or review the TRM award. For now, however, the $94.6 million contract remains with TRM Labs, while the court decides whether ICE followed the proper procurement process.
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