• Hamas’ military wing advised donors to avoid Binance and named rival services instead, according to Justice Department documents tied to an asset-forfeiture case.
  • Binance said the warning showed its controls were effective, while OKX said a referenced wallet had already been flagged internally as linked to illicit activity.
  • U.S. authorities continue targeting crypto-linked terrorist financing, though Treasury says traditional finance remains the preferred channel for terrorist money movement globally.

Hamas’ military wing advised donors to avoid Binance and use rival crypto services, according to U.S. Department of Justice documents tied to an asset-forfeiture case. The guidance surfaced in a letter attributed to the Al-Qassam Brigades and offered a view into how a militant organization assessed exchange-related enforcement risk. The document suggests the group was trying to reduce the chances that transfers would be detected or blocked. The disclosure comes as U.S. authorities focus on digital-asset channels used in terrorist financing, while emphasizing that financial services remain the main method for moving funds.

The communication named Bybit, OKX and other services as alternatives while discouraging use of Binance for transfers connected to the group. That recommendation does not itself establish that the named companies had weak compliance systems or knowingly facilitated prohibited activity. Major crypto platforms serve broad global customer bases, and the appearance of a company in illicit actors’ communications is not evidence of cooperation. Binance said the warning to avoid its platform demonstrated that its controls were working, citing sanctions screening, transaction monitoring, investigations and collaboration with law enforcement against terrorist financing and other financial crimes.

Exchanges Respond as Enforcement Scrutiny Intensifies

OKX said the wallet referenced in the February 2025 communication had no association with its platform and had been identified as linked to illicit activity. The exchange said attempts by customers to transfer funds to that address would have been flagged and prevented. The response highlights how blockchain transparency can allow platforms to identify relevant high-risk destinations when sanctioned groups attempt to shift between services. Kast said all customers undergo identity verification and screening, supported by sanctions controls, customer due diligence and transaction monitoring. Bybit declined to comment, while another named provider did not respond.

The disclosure arrives against a U.S. counterterrorist-financing campaign focused on Hamas following the October 7, 2023 attacks on Israel. Treasury’s 2026 terrorist-financing risk assessment said Hamas and ISIS continued using digital assets for donations and transfers, although conventional financial products still dominate terrorist financing. The episode illustrates a contest between groups seeking financial access and compliance teams attempting to identify and disrupt prohibited flows. Earlier reporting cited in the documents pointed to crypto-linked activity connected to Hamas, while U.S. enforcement has been investigating and seizing assets suspected of supporting the organization’s financing networks.