Chainalysis is suing for a United States Government contract awarded to its competitor, TRM Labs. The debate focused on a contract for encryption investigation and evidence software totalling $94.46 million. According to Chainalysis, the relevant sector did not follow the normal competitive bidding procedure and other qualified companies should have been given the opportunity to participate.

Contract awarded by ICE to TRM Labs

The contract was awarded to TRM Labs by the United States Immigration and Customs Enforcement (ICE) on 2 July 2026 for the period from 1 July 2026 to 30 June 2027.

Public procurement records show that the contract contents include forensic software and supporting support, and that the services are for investigations by the Homeland Security Task Force, covering encrypted asset tracking, block chain analysis, cybercrime and fraud investigations, asset recovery, open-source intelligence and the diversion of AI-based cases.

Chainalysis contests undisclosed competition

The Chainalysis Government Solutions filed a lawsuit with the United States Federal Claims Court against the United States Department of Homeland Security and ICE challenging the direct award of the contract to TRM Labs without regular competitive bidding.

It stated that this decision was inappropriate and that the Government should allow other qualified suppliers to compete. However, the full indictment has not yet been made public. By Order of 31 July, Chainalysis was allowed to file the application in a sealed form and the Court granted its application for a protection order, with partial adjustments.

TRM Labs has joined the response.

TRM Labs has joined the case as an intervener of the defendant and can defend the contract directly obtained. As scheduled by the Court, Chainalysis filed a motion for judgement based on the administrative record by 11 August; the United States Government and TRM Labs were required to submit cross-cutting motions and responses by 21 August; Chainalysis could reply by 26 August; and the Government and TRM Labs were required to submit a final response by 31 August.

The Court has scheduled its oral arguments to be held at 10 a.m. Eastern United States time on 2 September at the National Court Building in Washington. The Government of the United States also requested the Court to issue a ruling by 10 September 2026.

ICE had previously directly procured Chainalysis services

Government records indicate that ICE had also awarded contracts to Chainalysis in the past without competition.

Of these, in September 2024, Chainalysis obtained a $3.44 million order for forensic software and services, and in May 2026, ICE granted it a licence order of approximately $2.62 million for Chainalysis Reactor. Both purchases were classified as single-source contracts.

If the Court ultimately upheld Chainalysis, the United States Government might need to re-examine the award decision.