Dear brother, ill-gotten money is money that was acquired through illegal means, such as usury, fraud, or gambling. It is one of the major sins that Allah has forbidden us from in His Holy Book and the Sunnah of His Prophet, peace and blessings be upon him. If you have acquired ill-gotten money, repentance is obligatory, and it includes several steps:

First: Sincere repentance from unlawful earnings.

1- Immediately stop making unlawful money: Stop the work or activity that led to the unlawful money, such as futures contracts or financial leverage.

2- Regret for the past: to feel true regret for committing this sin.

3- Resolve not to return: Decide not to return to this action ever.

4- Fix what can be fixed: get rid of ill-gotten money and spend it on charitable causes.

God Almighty said:

“But whoever repents after his wrongdoing and reforms, then indeed, Allah will accept his repentance.” (Al-Ma’idah: 39)

Second: Is it possible to benefit from unlawful money?

If you knew that this money was forbidden at the time you acquired it, then it is not permissible for you to keep it or benefit from it. Rather, you must get rid of it. The opinions of scholars differed on this matter, and I will explain everything to you in detail. You must review yourself carefully and choose what is right for yourself.

1- If you were ignorant of its prohibition at the time of earning it, then you learned later and repented, then some scholars believe that it is obligatory to get rid of it.

As for Sheikh Al-Islam Ibn Taymiyyah, may God have mercy on him, he believes that the repentant who was ignorant of its prohibition is permitted to benefit from it if he is poor, based on the Almighty’s saying:

“But whoever receives an admonition from his Lord and desists may have what is past, and his affair rests with Allah.” (Al-Baqarah: 275)

Third: How to get rid of ill-gotten money

If you want to get rid of ill-gotten money, you should spend it on charitable causes that do not directly benefit you. One of the best ways is:

1- Spending on the poor and needy: such as giving alms to the needy, orphans, and wayfarers.

2- Start with needy relatives: Giving charity to needy relatives has a double reward. The Prophet, may God bless him and grant him peace, said:

“Charity given to a poor person is charity, but given to a relative it is two things: charity and upholding the ties of kinship.” (Narrated by Al-Tirmidhi)

This shows that giving charity to relatives is considered a double reward, because you give charity and maintain ties of kinship.

3- Doing ongoing charity such as providing water or digging wells, donating to hospitals and difficult cases that are unable to pay, or paying the debt of a poor person who is unable to pay it.

Fourth: The virtue of getting rid of unlawful money and giving charity

Getting rid of ill-gotten money and giving charity in them is a great virtue. God Almighty said:

“The parable of those who spend their wealth in the way of Allah is that of a seed [of grain] which grows seven spikes, and in each spike is a hundred grains.” (Al-Baqarah: 261)

And God Almighty said:

“Who is it that would loan Allah a goodly loan so He may multiply it for him many times over?” (Al-Baqarah: 245)

Summary of the legal ruling:

1- If you have acquired money and you know that it is forbidden, you must get rid of it immediately.

2- If you acquired it out of ignorance, it is permissible for you to benefit from it if you are poor according to the opinion of Sheikh Al-Islam Ibn Taymiyyah, but getting rid of it is still better.

3- Priority in charity is given to needy relatives, while ensuring that the money is spent on charitable causes.

We ask Allah to accept your repentance and keep you steadfast on the truth. If you have any other questions, do not hesitate to ask.