I traded on a prediction market before I knew it was haram and made money from it which I have already spent. What should I do now?

JazakAllah Khair for asking this honestly. The fact that you are asking shows genuine concern for doing the right thing and that itself is a good sign.

The core Islamic jurisprudence principle that applies to your situation is one of the most fundamental in the entire tradition: actions are judged by intentions, and ignorance of a ruling removes the sin of violating it. The Prophet Muhammad, peace be upon him, established clearly that a person who does something prohibited without knowledge that it is prohibited is in a fundamentally different position from someone who does it knowingly.

You traded prediction markets without knowing they were Haram. You were not defying a ruling you knew about. You were acting on incomplete information in a space where clear scholarly guidance has only recently become more accessible. This is genuine ignorance rather than willful transgression, and Islamic jurisprudence treats these two situations very differently.

The scholarly consensus on earnings from Haram activities done in ignorance varies between schools but the most widely held and practically applied position is as follows. For past earnings already spent in ordinary permissible ways, you are not obligated to calculate the exact amount and replace it from your current wealth, because the sin was not yours given the ignorance. What is required is sincere repentance, which means acknowledging the action, feeling genuine remorse that it happened, and committing not to return to it now that you know.

CoinStudy's Shariah Board Chairman Dr. Usman Quddus, PhD in Islamic Studies and Finance, reviewed this question directly and provided the following ruling:

"An action done on the basis of ignorance does not require expiation (Kaffarah). The best repentance for it is to not do this action again."

This confirms that you have no financial obligation to repay or replace the money you already spent. The chairman's ruling is clear and direct on both dimensions of your question. There is no Kaffarah required because the action was done without knowledge. And the complete and sufficient repentance is simply to stop doing it now that you know.

The repentance therefore has one essential practical component. Now that you know prediction markets are Haram you must stop trading them completely and permanently. If you continue trading them after knowing the ruling, the situation changes entirely and becomes a knowing transgression rather than an innocent mistake. The protection that ignorance provides does not extend forward once the knowledge has arrived.

Some scholars additionally recommend giving voluntary Sadaqah as an expression of gratitude and as a way of purifying your wealth spiritually, not because it is obligatory in your situation but because it is a beautiful practice when one becomes aware of past mistakes. This is entirely separate from the Kaffarah question which the chairman has already resolved. Voluntary Sadaqah in whatever amount feels meaningful to you is a personal spiritual choice, not a religious obligation here.

The practical steps are therefore straightforward. Stop trading prediction markets and all similar zero-sum speculative platforms now that you know the ruling. Make sincere Tawbah by acknowledging the past activity, feeling genuine remorse, and committing not to return to it. Consider voluntary Sadaqah if you feel moved to do so. Move forward using CoinStudy's research to build a permissible investment approach.

Your honest concern about this question and your willingness to ask it are themselves signs of the taqwa that Allah rewards. In shaa Allah your repentance is accepted and your path forward is clear.