CoinDesk
Hamas' military wing advised donors not to use Binance to move funds, instead recommending Bybit, OKX, Kast and Redotpay, according to a US Department of Justice asset forfeiture filing from Sept 9 that reproduces an Al-Qassam Brigades letter in full. The group also told donors to use Tether's USDT stablecoin on the TRC-20 network on the Tron blockchain.
"It is preferable not to use the 'BINANCE' platform to transfer support," the letter said, urging donors to enter fictitious recipient data so wallets would not be blocked. The guidance offers a rare look at how a sanctioned militant group evaluates crypto platforms on the assumption that some transfers will be detected or blocked.
Why it matters
The US Treasury's 2026 terrorist-financing risk assessment said groups including Hamas and ISIS continue to use digital assets for donations and transfers, though traditional finance remains their preferred channel. The Wall Street Journal reported that wallets linked to Hamas received about $41 million between 2020 and 2023, and that Treasury was investigating $165 million in crypto-linked transactions tied to the group.
The exchanges named pushed back. Binance's chief compliance officer Noah Perlman said the letter shows its "controls are working." OKX said the referenced wallet had no association with the exchange and was already flagged as illicit. Kast pointed to a 50-plus-person compliance operation with Elliptic, Sumsub and Sardine tooling. Bybit declined to comment and Redotpay did not respond. Inclusion in the letter does not prove these platforms have weak KYC or AML controls.
Market impact
The reputational overhang lands on Bybit, OKX, Kast and Redotpay at a delicate moment, with the US refocusing counterterror-financing enforcement after Oct 7. For Tether, another documented link between USDT on Tron and sanctioned actors will fuel ongoing scrutiny even as the stablecoin pushes into regulated finance. Watch for possible follow-on enforcement, tighter screening requirements on TRC-20 transfers, and whether Binance leverages the letter in its own regulatory defense.
Frequently asked questions
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Which platforms did Hamas' military wing recommend instead of Binance?
According to a DoJ forfeiture filing, the Al-Qassam Brigades letter told donors to use Bybit, OKX, Kast, Redotpay and Trust Wallet, and to transfer via Tether's USDT stablecoin on the TRC-20 network on the Tron blockchain.
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Why did the Al-Qassam Brigades letter say to avoid Binance?
The letter said it was preferable not to use Binance so donor wallets would not be blocked, and advised entering fictitious recipient data, reflecting the group's assumption that some transfers could be detected by the exchange's controls.
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How much crypto did Hamas-linked wallets receive?
The Wall Street Journal reported that cryptocurrency wallets connected to Hamas received about $41 million between 2020 and 2023, and that Treasury was investigating $165 million in crypto-linked transactions possibly tied to financing the group before October 2023.
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Does inclusion in the letter mean Bybit or OKX have weak KYC?
Not necessarily. OKX said the referenced wallet had no association with it and was already flagged as illicit, Kast cited a 50-plus-person compliance team with Elliptic and Sardine tooling, and large platforms are used for many purposes beyond illicit finance.
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What was Binance's response to the letter?
Binance chief compliance officer Noah Perlman said that when terrorist groups tell people to avoid Binance, it shows the company's controls are working, citing its sanctions screening, transaction monitoring and cooperation with law enforcement.
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