Hamas' military wing instructed donors to steer clear of Binance and instead route cryptocurrency contributions through rival platforms including Bybit, OKX, Kast and Redotpay, according to recently disclosed U.S. Department of Justice documents.
What the Documents Reveal
The DOJ filings indicate that the Izz ad-Din al-Qassam Brigades, the armed faction of Hamas, gave specific guidance to supporters about which crypto exchanges to use when sending funds. Rather than relying on Binance, the world's largest cryptocurrency exchange by trading volume, donors were told to turn to a handful of alternative platforms.
The named services span both established exchanges and newer payment-focused fintech products. Bybit and OKX are among the larger global crypto trading venues, while Kast and Redotpay are payment platforms that have gained traction in the digital asset space.
The guidance suggests militant groups are actively adapting their fundraising tactics to sidestep platforms with stronger compliance controls.
Why It Matters for the Industry
The revelation underscores the persistent challenge that crypto exchanges face in preventing their platforms from being exploited by sanctioned entities and designated terrorist organizations. Binance has invested heavily in compliance infrastructure following its own regulatory reckoning with U.S. authorities.
The apparent effort to avoid Binance could be read as an indirect acknowledgment that the exchange's monitoring and enforcement measures have become more robust, prompting bad actors to look elsewhere. It also puts pressure on the other named platforms to demonstrate that they can detect and block illicit flows.
Key takeaways from the disclosure include:
- Hamas' military wing reportedly discouraged the use of Binance for donations
- Donors were directed toward Bybit, OKX, Kast and Redotpay
- The information stems from U.S. Department of Justice documents
The findings are likely to draw fresh scrutiny from regulators and law enforcement, who continue to monitor how digital assets are used to move money across borders outside traditional banking channels.