Chainalysis Sues ICE Over $94.66 Million Sole-Source Contract Award to TRM Labs

Chainalysis has sued US Immigration and Customs Enforcement, alleging the agency unfairly funneled a $94.66 million blockchain analytics contract to rival TRM Labs through a sole-source award.

The Block reported on Aug. 30 that Chainalysis Government Solutions, the company’s US government-focused unit, told the US Court of Federal Claims that ICE applied unfair evaluation criteria when it awarded TRM Labs a $94.66 million contract for forensic software and support services without a competitive bidding process. The contract runs from July 1, 2026, through June 30, 2027.

At the center of the dispute is Chainalysis’s claim that the requirements ICE disclosed to vendors differed from the standards it ultimately used to select TRM Labs. In a request for information issued on May 28, ICE asked whether vendors had a database covering more than 1 million financial-fraud victims, an AI-based investigative platform, tools to automatically alert virtual asset service providers, or VASPs, to suspicious fund transfers, and arrangements with stablecoin issuers to help freeze illicit assets.

ICE then said on June 8 that it planned to proceed with a sole-source award to TRM Labs while leaving the door open to other vendors. The final Statement of Need issued at that stage, however, focused on three areas: fraud, cybercrime and sextortion. Many of the detailed requirements included in the earlier RFI were omitted. Vendors were given three days to submit a one-page capability statement, and Chainalysis was reportedly the only company to do so.

Chainalysis alleges ICE nonetheless relied in its final evaluation on detailed criteria from the earlier RFI that were not disclosed in the final solicitation. ICE determined that Chainalysis lacked capabilities such as real-time automated crime disruption, integration of on- and off-chain information, and the ability to identify and notify large numbers of victims. Some of those requirements were not included in the final Statement of Need provided to competing vendors, according to the complaint.

The company also argued that the capabilities ICE deemed unique to TRM Labs — including a large fraud-victim database, an AI-based investigative platform, automatic asset-freezing through the Beacon Network, and cooperation arrangements with stablecoin issuers — were tailored to TRM’s existing products and business structure. Chainalysis further said ICE’s own review found that both companies had AI-driven investigative platforms and experience supporting law enforcement agencies.

Chainalysis also challenged the evaluation process itself. It submitted its one-page materials on June 11, but ICE concluded the following day that only TRM Labs could satisfy all operational, technical and data requirements. Chainalysis said ICE did not ask for additional explanation or supplemental materials during that process.

Chainalysis first filed a protest over the contract decision with the US Government Accountability Office on July 12, then withdrew it on July 21 and moved the dispute to the Court of Federal Claims. In the lawsuit, it is asking the court to declare the sole-source award to TRM Labs unlawful, permanently halt performance of the contract, and order the project to be reopened under full and open competition.

TRM Labs has joined the case to defend the award. The court has not yet ruled on the merits of Chainalysis’s claims. Oral arguments are scheduled for Sept. 2.