My mind isn't settled as I keep thinking different things, what is on your mind readers?
You must not deviate from the right path. Money earned from wrong things will never bring peace. If a person is doing something wrong, it is best to report it to the authorities. Otherwise you will also be doing wrong. Try not to communicate with that person. If they contact you again, tell them that you don't know much about Bitcoin. There are many options and the decision should be yours. My suggestion is to do the right thing. The truth is sometimes very clear. There is no need to hide behind excuses.
This kind of thing doesn't happen often. Don't do anything you'll regret and don't feel guilty for the rest of your life. Reporting to the authorities would be the best decision. Because there is something wrong.