Not saying it did or didn’t happen but a few things to consider.
The OP has lost nothing here apart from the trust of a so called friend. Yet (I am assuming male) he is the one who has taken the trouble to find a forum and ask for opinions and not the perpetrator, who you would expect to be the one posting the story.
Although not asked directly the only agenda that can be gleaned from the opening post is that the OP is looking for backing/reinforcement saying “your friend should get his deposits back”.
Putting myself in the position of the OP, would I be going to this trouble on behalf of someone who has been very underhanded and implicated me, in the scenario, unless I had an ulterior motive? Very probably not and if he still is a friend you have inadvertently exposed him as a fraudster.
Other things that have been mentioned such as the saved password and depositing without entering a cvv number are things that are more likely to have been done with purpose, than unintentionally.
Taken from the post on page 1. “I have not asked for anything back”.
What would you be entitled to ask for? Or is it possible that “I” and “he” are the same person?
As
@Harry_BKK said I am happy to be proven wrong but something doesn’t add up here.