Chainalysis Government Solutions has sued the U.S. government over a roughly $94.7 million Immigration and Customs Enforcement contract awarded to rival blockchain intelligence provider TRM Labs.

Chainalysis filed the bid protest on July 27 in the U.S. Court of Federal Claims, the specialized venue where contractors challenge federal procurement decisions. The company alleges that the Department of Homeland Security and ICE improperly bypassed competitive procurement procedures when awarding the work to TRM. The court has not ruled on those claims.

Chainalysis Challenges Sole-Source TRM Award

ICE awarded TRM Labs contract 70CMSD26C00000005 on July 1 for analytical support tied to the Homeland Security Task Force National Coordination Center Cyber Disruption Center. Public procurement records place the contract’s potential value at approximately $94.66 million, with work scheduled to run through June 30, 2027.

ICE had indicated in June that it intended to obtain the services from a single source after determining that only one provider was reasonably available for the required capabilities. Under federal acquisition rules, agencies are generally required to compete contracts and may award work without competition only on a justified basis, such as a finding that only one responsible source is available — the determination Chainalysis is now contesting. The requirement covers forensic software and analytical services supporting scam disruption, cybercrime investigations, sextortion cases and other Homeland Security Investigations operations.

Chainalysis is seeking to stop the arrangement through the federal bid-protest process, a channel through which a court can enjoin performance of an award and direct an agency to reopen competition if a sole-source justification fails review. Detailed portions of its challenge remain unavailable publicly because filings containing procurement and competition-sensitive information have been placed under seal.

TRM Labs Joins the Case

TRM Labs has intervened in the case as a defendant-intervenor alongside the U.S. government, a step that gives the contract awardee a direct role in defending the award. The court docket records TRM’s motion to intervene as the dispute proceeds on an accelerated briefing schedule.

The court has also entered a protective order governing confidential material exchanged during the case. Chainalysis filed its motion for judgment on the administrative record on August 11, while the government and TRM are due to submit their responses and cross-motions on August 21.

The dispute pits two major blockchain-forensics providers against each other over a federal law-enforcement contract. Both companies recently joined a United for Wildlife initiative to trace cryptocurrency payments linked to illegal wildlife trafficking, underscoring their broader involvement in government and financial-crime investigations.

Oral Arguments Set for September 2

Demand for blockchain intelligence has expanded as law-enforcement agencies increasingly use transaction tracing, wallet attribution and cross-chain analysis in fraud, sanctions and asset-seizure cases. Chainalysis and TRM data have also featured prominently as crypto seizures reached about 11% of identified illicit transaction volume.

Judge Stephen S. Schwartz is scheduled to hear oral arguments on September 2 at 10:00 a.m. EDT at the National Courts Building in Washington, D.C.

Chainalysis must reply to the government and TRM by August 26, with final replies due August 31 and a joint appendix scheduled for September 1. The government has requested a ruling by September 10.