Al-Qassam Brigades, the military wing of Hamas, instructed potential donors to avoid Binance when transferring funds to the group, according to a U.S. Department of Justice asset-seizure filing released September 9.
Instead, the group recommended alternative crypto platforms including Bybit, OKX, Kast and Redotpay. The guidance also specified using Tether's USDT stablecoin and the TRC-20 network on the Tron blockchain for transfers.
In the letter, Al-Qassam Brigades stated that Binance "can be used to purchase currencies only, then use another application to complete the transfer process." The group recommended that donors avoid entering identifying information when making transfers to protect their wallets from being blocked.
The document provides insight into how sanctioned groups evaluate cryptocurrency platforms based on perceived compliance vulnerabilities. However, the inclusion of these platforms in the letter does not necessarily indicate weak compliance protocols, as major crypto exchanges and stablecoins serve legitimate purposes across many transactions.
Crypto as a Financing Channel
Cryptocurrency has emerged as one of several methods used by sanctioned groups and illicit actors to move money internationally, particularly through stablecoins and online wallets. The U.S. Treasury noted in its 2026 terrorist-financing risk assessment that groups including Hamas and ISIS have used digital assets for donations and transfers, though traditional financial products remain the preferred method for terrorist financing.
According to the Wall Street Journal, cryptocurrency wallets connected to Hamas received approximately $41 million between 2020 and 2023. The Treasury subsequently reported investigating $165 million in cryptocurrency-linked transactions that may have financed Hamas operations prior to October 2023.
Platform Responses
Binance's chief compliance officer Noah Perlman stated that the recommendation to avoid the platform demonstrates the effectiveness of its controls. "When terrorist groups tell people to avoid Binance, it shows our controls are working," Perlman said, adding that the exchange invests in sanctions screening, transaction monitoring and works with law enforcement on financial crime investigations.
OKX stated that the wallet address referenced in the February 10, 2025 communication had no association with the exchange and had already been flagged by its internal controls as linked to illicit activity, preventing fund transfers to that address.
Kast said its compliance function includes more than 50 employees and combines internal technology with external providers including Elliptic, Sumsub and Sardine for sanctions screening and transaction monitoring.
