Starfish Space lost contact with its Otter 24C satellite one month after launch, ending a $15 million NASA contract. The spacecraft, launched on October 1 via SpaceX Transporter-18, suffered a failure in the onboard electronics protection system provided by Astro Digital. This triggered an automatic radio shutdown, rendering the satellite unresponsive to ground control commands.
This failure marks the second consecutive hardware issue for the operator, following a 2023 incident involving uncontrolled rotation. The SSPICY program aimed to inspect retired US satellites to prepare for future deorbiting operations. Despite the loss, the company intends to fulfill its obligations using other assets in its fleet and is currently updating software on Astro Digital platforms to prevent further malfunctions.
The company maintains a separate $52.5 million contract with the US Space Development Agency for satellite deorbiting services. Previous testing in 2025 with the Otter Pup 2 satellite successfully demonstrated proximity maneuvers at a distance of 40 meters, which the company cites as evidence of the platform's technical viability for future inspection missions.
