Disposing of the profits from riba (usury or interest) and taking zakah from its owners

Question:
He asks: Is it permissible to take zakah, charity, or other such funds from the people of riba (usury or interest) as a reward? And then we distribute them to the poor, the needy, and those in debt?

Answer:
It is obligatory to be cautious of riba. However, when the proceeds of riba are distributed among the poor without them knowing that it is riba, and without them knowing that it is being distributed to them, praise be to Allah, these are the interests of the Muslims. The trader is not permitted to benefit from it; rather, he is warned against it. Riba is among the ugliest of evil deeds. When money is acquired through riba, it should be spent on acts of righteousness, benefiting the poor and the non-poor, such as repairing roads or creating things that benefit people in their interests. The point is that it is spent on something that benefits the Muslims, and it is not disclosed to the recipient that it is riba, because this is preferable to destroying it, burning it, or throwing it into the sea. Rather, it is spent in the interests of the Muslims, just like other lost funds.