Howdy genghishan, I would not recommend using moldy buds for any thing! There is no telling what kind of compounds are being formed by the mold (penicillin is, after all, a toxin). were You drying the bud, or curing it when the mold started? Fortunately, I live in a relatively dry climate and have not had ant mold during the drying. I have had mold develop during the curing time, that is why I now cure the bud sealed in jars in the refrigerator. The cure takes a little longer due to the lower temperature, but I have not had any more problems with mold. I have been questioned about the high humidity in a fridge, but that does not affect the humidity in the jars as they are sealed and that is only affected when 'burping' the jars (outside of the fridge).
Sorry to hear about the problem..