Yes, he has to pay it back. And Allaah knows best.

Principles of Fiqh

Jurisprudence and Islamic Rulings

Transactions

Forbidden Kinds of Wealth

Fataawa al-Imaam al-Nawawi, p. 144

Contemporary Transactions

Benefiting from Forbidden Wealth

He
      stole money and gave it to his father

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He stole money and gave it to his father