´It was narrated that Zaid bin Khalid Al-Juhani said:` “A man from (the tribe of) Ashja’ died in Khaibar, and the Prophet (ﷺ) said: ‘Offer the funeral prayer for your companion.’ The people found that strange.* When he saw that, he said: ‘Your companion stole from the spoils of war (when fighting) in the cause of Allah.’”
Hadith Referenceسنن ابن ماجه / كتاب الجهاد / 2848
Hadith Gradingالألبانی:ضعيف | زبیر علی زئی:إسناده حسن
´It was narrated that Zaid bin Khalid said:` "A man died at Khaibar and the Messenger of Allah said: 'Pray for your companion; he stole from the spoils war.' We inspected his luggage and fund some of the beads of the Jews that were not even worth two Dirhams."
Hafiz Muhammad Ameen
1961. Commentary: That is, only a few people should perform the funeral prayer (janazah) for such individuals; there should be no special arrangements, and prominent personalities should not participate in the funeral prayer, so that such criminals are discouraged and they remain fearful.
Source: Sunan Nasa'i: Translation and Benefits by Shaykh Hafiz Muhammad Amin Hafizullah, Page: 1961
Sayyiduna Zayd bin Khalid al-Juhani (may Allah be pleased with him) narrates: We were present with the Prophet (peace and blessings of Allah be upon him) at Khaybar. A man from the tribe of Ashja‘ died, so the Prophet (peace and blessings of Allah be upon him) did not perform his funeral prayer. The Prophet (peace and blessings of Allah be upon him) said: “You people perform the funeral prayer of your companion.” When the people searched his belongings, they found a necklace belonging to the Jews among his things, which would not even be worth two dirhams.
Shaykh Muhammad Ibrahim bin Basheer
Benefit: Committing treachery with war booty (mal-e-ghanimat) is a very grave crime; even if the stolen item is insignificant, it does not lessen the severity of the crime. Thus, for such people, only a few individuals should perform the funeral prayer, there should be no special arrangements, and prominent personalities should refrain from attending the funeral prayer, so that such criminals are discouraged and remain fearful.
In another hadith, the Messenger of Allah (sallallahu alayhi wa sallam) has declared the one who commits treachery to be among the people of Hellfire. [سنن ابي داود : 2849]
This also refutes those who claim that a believer cannot enter Hell. Careful consideration of the evidences from the Book and the Sunnah shows that due to a major sin, even a sinful believer can become deserving of Hell. However, the eternal punishment of Hell is only for disbelievers and polytheists. And Allah knows best.
Source: Musnad al-Humaydi: Commentary by Muhammad Ibrahim bin Bashir, Page: 834