What to Do with Prohibited Money
1- With regard to prohibited things that Islam regards as being of no value, it is not permissible to gain any benefit from them at all; rather they must be disposed of by being destroyed.
2- With regard to wealth that was taken from its owner with no justification and without his permission or consent, it must be returned to him, or to his heirs if he has died. If it is not possible to reach him, then it may be given in charity on his behalf.
3- With regard to the person who acquired prohibited wealth but was unaware of the prohibition on this transaction, or he was following a scholar who issued a Fatwa to that effect, he does not have to get rid of this wealth after coming to know of the prohibition and repenting from that; rather he may make use of it.
4- With regard to the one who acquired prohibited wealth despite knowing of the prohibition, and he took it with the permission and consent of the owner, then he repented from that, he does not have to return it. However the scholars differed as to whether he is obliged to give it in charity or whether he may keep it and make use of it, as is the view favoured by Shaykh Al-Islam Ibn Taymiyah.
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