My friend stole from me and I am confused on how to handle the situation.
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If they have no reason for stealing, again, distance yourself. When they ask why you no longer hang out, what’s going on, yada yada, tell them you feel you have drifted apart and it’s just not the same. You don’t have to tell them but trust me, they will know you know. They may apologise at this point for what they did, they may not. Be wary of an apology, it could just be a means to getting back in. Do not trust them with anything remotely financial again, even if they prove they are trustworthy. Stealing, money especially, is a HUGE breach of trust.
Write him off as a friend. As long as you let him hang around, he will continue to steal from you to support his habit. Find an organization that helps addicts, point him in that direction, and kick him out of your life.