Question
In the past I earned crypto through gambling sites/scam schemes. I want to repent — will paying zakat on it purify this wealth?
Ruling (Fatwa)
Short answer: No. Zakat purifies lawful wealth; the remedy for haram earnings is not zakat but full divestment: (a) what was taken from identifiable victims by fraud must be returned to them; (b) where owners cannot be identified (gambling pools etc.), the entire haram portion is given to the poor/public welfare without expecting reward. Neither counts as zakat, and there is no option of paying 2.5% and keeping the rest.
Details: Allah is pure and accepts only what is pure — even 'charity' from haram wealth is not accepted, let alone zakat. Repentance requires quitting the sin, remorse, firm resolve, and restoring people's rights. Where halal and haram are mixed, set aside the estimated haram portion cautiously (erring on the higher side) and divest it; the remaining halal wealth is yours and is zakated as usual.
Evidence: Sahih Muslim 1015; Quran 2:188; Quran 5:90; Sahih al-Bukhari 1410 (charity accepted only from lawful earning); the Permanent Committee and Shaykh Ibn Baz on divesting haram wealth.
For complex individual cases, consult a qualified scholar.
References
Quran
Quran 2:188; 5:90
Hadith
Muslim 1015; Bukhari 1410
Fiqh
Permanent Committee; Ibn Baz on divesting haram wealth