Hamas’ military wing urged donors to steer clear of Binance for fund transfers, opting instead for platforms like Bybit, OKX, Kast, and Redotpay, as per recent documents from the U.S. Department of Justice.

According to a letter from the Al-Qassam Brigades, the military faction of Hamas, potential donors are advised against using Binance for transferring funds to their wallets. This information comes from documents released by the U.S. Department of Justice (DoJ).

The group suggested that donors utilize rival cryptocurrency exchanges such as Bybit, OKX, Kast, and Redotpay. In the letter, which is part of a DoJ asset-seizure filing, they recommended using Tether’s USDT stablecoin and the TRC-20 network, a system designed for creating and managing fungible tokens on the Tron blockchain.

"It is preferable not to use the ‘BINANCE’ platform to transfer support; and not to enter any data indicating our official name so that your wallet is not blocked and for your safety as well (entering any fictitious data as the recipient of the transfer); You can transfer through the application: trust wallet, RedotPay, OKX, Kast, BYBIT…,” the letter stated.

They also mentioned that while Binance could be used for purchasing currencies, another application should be utilized to complete the transfer process.

This guidance provides a rare insight into how a sanctioned militant organization assesses cryptocurrency platforms for potential donors, especially considering the risk of detection or blocking of some transactions.

However, the mention of these companies in the letter does not imply that they have inadequate 'know your customer' (KYC) and 'anti-money laundering' (AML) measures, as major crypto platforms and leading stablecoins serve multiple purposes.

Illicit Financial Channels

Cryptocurrency has emerged as one of several methods employed by sanctioned organizations and other illicit entities to facilitate cross-border transactions, particularly through stablecoins (cryptocurrencies designed to maintain a stable value by being pegged to a reserve asset like the U.S. dollar) and online wallets.

The U.S. Treasury noted in its 2026 terrorist-financing risk assessment that groups like Hamas and ISIS have persistently utilized digital assets for donations and transfers. However, it emphasized that traditional financial services remain the preferred method for these organizations to move money.

Following the attacks on Israel on October 7, 2023, conducted by Hamas, the U.S. has intensified its efforts to counter terrorist financing linked to the group.

Reports have indicated that Hamas has solicited cryptocurrency donations, although the extent and success of these initiatives are still uncertain. The Wall Street Journal reported on October 10, 2023, that cryptocurrency wallets associated with Hamas had received approximately $41 million from 2020 to 2023.

Additionally, the newspaper later revealed that the Treasury is investigating $165 million in cryptocurrency-related transactions that may have financed Hamas prior to the October 2023 attacks.

While the documents suggest that Binance might have enhanced its KYC and AML protocols, it remains unclear if Hamas's recommendation is a reaction to this.

Binance’s chief compliance officer, Noah Perlman, stated, "When terrorist groups tell people to avoid Binance, it shows our controls are working. Binance is not a safe place for illicit actors. We invest heavily in sanctions screening, transaction monitoring and investigations, and we work closely with law enforcement to identify, disrupt and report terrorist financing and other financial crime."

According to OKX, the wallet address mentioned in the communication dated February 10, 2025, had no links to OKX and was already flagged by its internal controls as associated with illicit activities. Consequently, any attempts by OKX users to transfer funds to that address would have been blocked, the exchange confirmed via email.

Kast has stated that it employs a dedicated financial crime compliance team, consisting of over 50 employees across its compliance organization.

“All customers are subject to identity verification and screening before accessing our services. The company combines its own technology with established compliance and risk-management providers, including Elliptic, Sumsub, and Sardine, to support sanctions screening, customer due diligence, and transaction monitoring,” a spokesperson for Kast said via email.

Bybit opted not to comment, and Redotpay did not respond to inquiries by the time of publication.