Hamas Told Crypto Donors to Avoid Binance, Use Rival Platforms

A newly released US government document has revealed how a terrorist group tried to guide its supporters through the world of cryptocurrency.

According to files from the U.S. Department of Justice (DoJ), the military wing of Hamas — known as the Al-Qassam Brigades — sent a letter to potential donors telling them not to use Binance, the world's largest crypto exchange (a website where people buy, sell, and send digital money).

Instead, the group recommended rival platforms like Bybit, OKX, Kast, and Redotpay, along with a digital wallet app called Trust Wallet.

Why the warning? The group feared that Binance might detect and block their transfers, freezing their funds. They even advised donors to enter fake recipient names to avoid being caught.

Here are the key details:

• The letter recommended using USDT (Tether), a "stablecoin" — a type of cryptocurrency designed to stay equal to $1 US dollar.
• It suggested the TRC-20 network, a system built on the Tron blockchain (a digital record-keeping technology) for moving these tokens.
• Hamas said Binance could still be used to *buy* crypto, but not to *transfer* it.

Important context: Being named in this letter does NOT mean these companies have weak security. Large crypto platforms are used by millions of ordinary people for legitimate reasons.

In fact, several companies pushed back strongly:

• Binance said the warning proves its security works: "When terrorist groups tell people to avoid Binance, it shows our controls are working."
• OKX said the flagged wallet was never connected to them and had already been marked as suspicious.
• Kast said it employs over 50 compliance staff and verifies every customer's identity.

These checks are part of KYC (Know Your Customer) and AML (Anti-Money Laundering) rules — legal requirements that force companies to verify who their users are and stop criminal money movement.

The bigger picture: The US Treasury reports that groups like Hamas have used crypto for donations, but says traditional banking is still their preferred way to move money. Wallets linked to Hamas reportedly received around $41 million between 2020 and 2023.

This is an AI-generated summary. Read the original article at: https://www.coindesk.com/policy/2026/09/16/hamas-military-wing-told-donors-to-avoid-binance-use-bybit-okx-and-others-instead