Hamas' military wing urges donors to use alternatives to Binance for contributions, citing risks of detection and account issues.
Hamas' military faction, the Al-Qassam Brigades, has advised potential donors to avoid using Binance for fund transfers, instead recommending alternatives such as Bybit, OKX, Kast, and Redotpay, according to documents from the U.S. Department of Justice.
The guidance was detailed in a letter urging supporters to refrain from using Binance due to concerns over possible account blocks. The group also suggested utilizing Tether's USDT stablecoin and the TRC-20 network for safer transactions.
The letter cautioned donors against entering their organization’s name to prevent detection, and recommended using applications like Trust Wallet alongside the exchanges mentioned. Binance is acknowledged as a viable option for purchasing cryptocurrencies, but not for transferring them.
This statement from a sanctioned group highlights how they evaluate cryptocurrency platforms for their operations, particularly in light of the risks posed by detection and transaction monitoring.
Cryptocurrency's Role in Illicit Financing
Digital currencies have become increasingly popular among sanctioned organizations for cross-border transactions, especially through stablecoins and online wallets. The U.S. Treasury has noted that groups like Hamas have relied on digital assets for funding, although conventional financial services remain their primary means of moving money.
Following the recent attacks on Israel by Hamas on October 7, 2023, the U.S. has intensified its efforts to combat terrorist financing linked to the group. Reports indicate that Hamas has sought cryptocurrency donations, with approximately $41 million raised in digital assets since 2020, although the effectiveness of these fundraising efforts is unclear.
Furthermore, the Treasury is currently investigating $165 million in cryptocurrency transactions that may have supported Hamas prior to the October attacks. While it's reported that Binance may have enhanced its transaction monitoring systems, it remains uncertain if the group's avoidance of the platform stems from these changes.
Reactions from the exchanges suggest a commitment to compliance; Binance's chief compliance officer noted that terrorist organizations avoiding their platform indicates effective controls are in place. OKX confirmed that a flagged wallet mentioned in the communication was already under scrutiny for illicit activity. Kast stated its compliance team is extensive, asserting that all customers undergo rigorous identity checks.
Bybit did not provide comments, while Redotpay did not respond before publication.
