Did we also learnt something about this story? I think it's karma that struck this my guy. Who knows how many vulnerables he has dubious while trying to help them with their crypto wallets.
This should also serve as lesson not to trust anyone with your wallet seed phrase because even your relatives can betray you.
This is not only about betrayal from other people but also about greediness from the other party (your friend). Moreover, both of them are scammers, and they have various ways to scam each other, so the story is funny to me because if your friend doesn’t attempt stealing from the other person, he will not have lost his $7. This is just karma that affects them, and it is something that your friend needs to know: what he is doing is not good. If not, why do you think it will be favourable for you to steal from someone who has worked for his own money? Did you know how hard it is for him to have that? Which he even has the mind to pay for the gas fees.
If we are to be sincere, your friend is the real scammer here because he attempted to steal $420, and in the process, he lost $7, so who is the real scammer? Is obviously your friend because, as you said, only God knows the number of his victims.