Is this a Hadith?
“Whatever is stolen from a Muslim is sadaqah.”
Yes. This narration is recorded in Sahih Muslim as part of a longer Hadith.
The part in question is as follows:
Sayyiduna Jabir (radiyallahu ‘anhu) reported that Rasulullah (sallallahu ‘alayhi wa sallam) said: “Whatever is stolen from [a Muslim] is charity…” [i.e. He will receive the reward as though that item was given in charity]
(Sahih Muslim, Hadith: 1552)
See another version of this Hadith here
Note: This by no means gives an excuse to the thief to ‘extract’ such sadaqah!
And Allah Ta’ala Knows best.
Answered by: Moulana Suhail Motala
Approved by: Moulana Muhammad Abasoomar