Spyware Maker Paragon Cuts Ties with Italian Government Amid Graphite Scandal
Published on June 10, 2025
- Paragon Solutions accused the Italian government of an alleged refusal to collaborate in an illegal surveillance case.
- The company based in Israel reportedly wanted to participate in the investigation of journalist Francesco Cancellato’s case.
- This marks the first instance of a spyware provider publicly severing ties with a specific customer, citing alleged misconduct concerns.
Paragon, an Israeli spyware maker, has accused the Italian government of refusing its assistance in investigating allegations that its technology was unlawfully used to surveil journalist Francesco Cancellato.
Cancellato, director of the news website Fanpage, was reportedly notified by WhatsApp in January that he had been targeted in a mass-hacking campaign involving Paragon's spyware, which allegedly impacted around 90 users.
According to a statement first reported by Haaretz on Monday, Paragon offered the Italian government and parliament a way to verify whether its software, Graphite, had been misused.
The company claims the refusal of this offer prompted it to terminate its contracts with Italian intelligence agencies AISI and AISE.
Paragon stated, “The company offered both the Italian government and parliament a way to determine whether its system had been used against the journalist in violation of Italian law and the contractual terms. As the Italian authorities chose not to proceed with this solution, Paragon terminated its contracts in Italy.”
The Italian government, however, rebuffed these claims, asserting that the decision to end the contract with Paragon was mutual. Sources quoted by Italian news outlet ANSA stated that allowing Paragon to access spyware logs would have exposed sensitive data and compromised national security.
The Department of Information for Security (DIS) reportedly declined Paragon’s assistance to preserve the reputation of Italian intelligence agencies among international allies.
The controversy stems from a January report revealing unauthorized surveillance activities involving Paragon’s spyware.
Although the Italian parliamentary committee COPASIR concluded that there was no evidence Cancellato was targeted by Italian intelligence agencies, the journalist has called on Paragon to disclose specific details to clarify the matter.
COPASIR revealed that other users of Paragon’s spyware had been lawfully surveilled for activities related to illegal immigration.
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