Hamas' military wing advised crypto donors to avoid Binance, according to an FBI affidavit

Al-Qassam Brigades steered donors away from Binance

Hamas' military wing, the al-Qassam Brigades, explicitly told potential crypto donors to avoid Binance when sending funds, according to an FBI affidavit that surfaced in a recent Department of Justice asset-seizure filing.

The investigation began after human sources identified a Telegram message directing supporters to contact an al-Qassam Brigades email address for donation instructions. In February 2025, those sources wrote to the address and received a response in Arabic containing a new wallet address for transferring $USDT over the Tron blockchain.

The al-Qassam Brigades letter, which appears in full in the DOJ asset-seizure warrant, advised using Tether's USDT stablecoin on the TRC-20 network. It told donors it was "preferable not to use the 'BINANCE' platform to transfer support" and recommended Trust Wallet, RedotPay, OKX, Kast, and Bybit as alternatives.

The military group added that Binance "can be used to purchase currencies only, then use another application to complete the transfer process." The instructions also told donors not to disclose to currency exchangers who was ultimately receiving the money, and to use fictitious recipient details.

Binance froze accounts; other platforms respond

The affidavit makes clear why Binance was singled out: the exchange's know-your-customer checks were seen as an obstacle. Court filings identified Bitcoin, Ethereum, Wrapped Ethereum, Tether, and Tron across 18 Tether-controlled addresses and three Binance accounts allegedly linked to financing a foreign terrorist organization. According to the original filing, Binance froze withdrawals on three accounts linked to the network in April 2025.

Binance pushed back on the episode as evidence that its compliance program works. The exchange's chief compliance officer Noah Perlman said: "When terrorist groups tell people to avoid Binance, it shows our controls are working. Binance is not a safe place for illicit actors. We invest heavily in sanctions screening, transaction monitoring and investigations, and we work closely with law enforcement."

OKX said the wallet address referenced in the February 2025 communication had no association with OKX and had already been flagged by its internal controls as linked to illicit activity, meaning any transfer attempts would have been blocked. Kast said it maintains a dedicated financial crime compliance function with more than 50 employees across its broader compliance organisation, and that all customers are subject to identity verification and screening before accessing its services. Bybit declined to comment, and RedotPay did not respond to requests for comment.

The broader DOJ operation ultimately seized approximately $560,000 in cryptocurrency donations destined for Hamas and disrupted its fundraising and recruitment platforms. Binance and Tether both actively assisted in the seizure, providing addresses and remaining balances to the FBI.

The Treasury Department noted in its 2026 terrorist financing risk assessment that groups including Hamas continue to use crypto for some donations and transfers, while traditional financial services remain their preferred means of moving money.

Sources:
CoinDesk: Hamas told donors to avoid Binance, use Bybit and OKX instead
U.S. Department of Justice: DOJ disrupts Hamas terrorist financing schemes through crypto seizures
Decrypt: FBI seizes $560K in crypto bound for Hamas