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Chainalysis Government Solutions is asking a federal court to overturn a $94.66 million blockchain analytics contract awarded by US Immigration and Customs Enforcement to rival TRM Labs without open competition.
A redacted version of the complaint became public on August 28. Chainalysis alleges ICE rejected its submission using requirements that were not clearly disclosed to competitors. The court has not ruled on those claims.
ICE Gave Rivals Three Days and One Page to Challenge TRM Award
ICE began market research on May 28 with an 18-question Request for Information covering scam databases, AI-assisted investigations, automated asset-freeze notifications and stablecoin issuer relationships.
On June 8, the agency announced plans to award the work solely to TRM but gave other companies until June 11 to demonstrate that they could meet its requirements. Responses were limited to one page, and Chainalysis says it was the only alternative provider to submit one.
ICE concluded the following day that TRM was the only vendor capable of meeting its operational, technical and data requirements.
Chainalysis Says ICE Relied on Undisclosed TRM-Linked Criteria
Chainalysis argues that ICE later relied on requirements from its earlier RFI when rejecting the company, even though those criteria were not clearly presented as deciding factors in the final Statement of Need.
Its complaint points to automated notifications that allow crypto businesses to voluntarily freeze suspicious funds. Chainalysis alleges the requirement closely resembled TRM’s Beacon Network architecture.
The company also says ICE did not seek clarification or ask follow-up questions before deciding that Chainalysis could not meet the agency’s needs.
Chainalysis Challenge Heads to September 2 Hearing
ICE awarded TRM the one-year contract on July 1. The deal runs through June 30, 2027, and covers forensic software and analytical support for Homeland Security Task Force investigations.
Chainalysis first challenged the award through the Government Accountability Office before withdrawing that protest and filing in the US Court of Federal Claims on July 27.
The lawsuit seeks to block the TRM award and require a full and open competition. TRM has intervened to defend the contract, with oral arguments scheduled for September 2.
